MODULE 5

CUSTOMERS AND MARKETS

LEARNING OUTCOMES
The learners shall be able to:

• Examine the market and its customers,

• Compare the different types of customers;
• Distinguish the perfect customer,
• Create a customer persona,
• Design a customer journey map for the identified persona
• Assess market size using various approaches
• Adapt entrepreneurship marketing, and,
• Develop one's personal brand.

“Service, in short, is not what you do, but who you are. It's a way of living that you need to bring to
everything you do if you're to bring it to your customer interactions."

Betsy Sanders

Customers are the core of every business. Every business should always try to attract new
customers for profit and to stay in its industry. The customers are the real bosses of any company.
Having an increasing number of customers is the only way to grow a business. For an entrepreneur, he
needs to reflect on the market he is about to enter the moment he starts the process of creating a good
business concept and model. He needs to understand the needs of his customers, satisfy their needs and
retain them. The key to always being successful in business is to understand very well the market and
those customers inside.

Market and Customers

A market is any place where manufacturers, distributors and retailers sell and consumers buy.
Physical shops, high streets, or websites are examples of a market. The term may also speak of the
whole group of buyers for a product and/or service. Inside the markets are competitive companies that
offer similar products and/ or services. The prices of products and/or services are dictated by the market
due mainly from demands and competition.
Markets are always dynamic; hence businesses must always monitor the trends and the changing
needs of customers. Factors that influence the changes in the marketplace could be the economic
situations, innovations, lifestyles and new fashions.

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 In starting a new business, an entrepreneur must understand the market and those that are inside
it. He needs to identify first those customers he intends to sell to and how to reach them. Then he must
understand all the potential factors that contribute to the market he is entering into. Certainly these
factors shall determine how will he market to consumers, beat competition and create his own business
plan.

It is essential really to understand customers, their needs, their personality, their attitudes and
even their budgets. A company needs to bring to mind a "hunger" in a customer to buy its certain
products. Essentially, here are the things that customers look for when buying an offering whether a
product or service or both.

1. Price - Majority of the customers look at price when buying a product or availing of a service. It is a
reality that every customer purchases within his budget limit. Not unless a product and/or service is
exceptional customers may be compelled to spend outside his limitation.
2. Experience - These days, almost everyone is busy doing their activities. Most customers wanted to buy
things that are readily available. The market today contains so many alternatives to choose from. Hence,
it is essential to provide a worthwhile experience in addition to good product and/or service quality. This
kind of shopping experience may create loyal customers.
3. Design - The design of the product must always be appealing to customers.
4. Functionality - It is always expected by the customer that the product he is buying can serve its
purpose. Simply all the functionalities that are expected of the product should be present.
5. Convenience - The product and/or service must be always readily available for the customer,
otherwise, he will not buy the product and possibly look for an alternative.
6. Reliability - The product should be dependable and it should meet the customer's requirements and
expectations every time he buys it.
7. Compatibility - The product should be well-matched with the other products that the customer is
already consuming.
Customers are the essential component of every business because they are the ones who uses and
judges the quality of those products and/or services being bought from the market. In order for the
business to flourish, every business needs to retain old customers and make new ones. Therefore, for an
entrepreneur, he needs to consider that every customer is valuable and profitable.

Types of Customers

Every customer is unique, hence there is no single formula to approach them. In order to identify
the best approach on how to handle customers, it is necessary to know them first. Here are some types
of customers that an entrepreneur may encounter in his business.

The Potential Pandoy (Potential customer)

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 In principle, Pandoy cannot be considered a customer yet. However, he needs a little bit of
convincing and assistance to hopefully change into quickly making him a paying customer. He may show
interest in

the product and/or service offering by filling out a contact form, signing up in a newsletter or asking a
question through live chat or personal message. (PM). Said interest should be capitalized by an
entrepreneur by providing him the information about the benefits of the offering. The entrepreneur must
make Pandoy aware that he is available for help or advice any time for him. Surely Pandoy shall
appreciate such gesture even if he does not have any immediate need for said assistance.

New Netnot (New customer)

New Netnot is the fresh customer who has just bought something for the first time from a
business. An entrepreneur must always be watchful in dealing with first time customer, as the saying
goes "first impression is the last impression". It is understood that he bought that product and/or service
for the first time and a beginner at using it. It is vital to create a smooth adoption period for Netnot. An
investment of time to explain how a product and/or service offering works may lead to success in more
future business from the same customer. Hence, it is best to offer applicable assistance and make
contact option open with this customer. Establishing a customer relationship would help in converting
Netnot into a loyal customer.

Impulsive Icoy (Impulsive customer)

Impulsive Icoy is a customer that make instant buying decision based on craving or whim provided
that the conditions are right. He is highly influenced by his current mood when shopping. He needs not
much convincing to buy for as long as he wants to buy something with less steps. He is even less
interested in value proposition, so an entrepreneur must not waste said buying impulse when it comes.
When Icoy makes a query, an entrepreneur should give a quick and short response or else his impulse
will drop. It is a challenge to handle Icoy because he always wants fast and brief help for all the useful
products available at that point of time. He wants all the useful products in his front in order to buy what
he likes form the display. Although, when treated properly, Ico could provide high percentage of sales for
the company.

Discount Daboy (Discount customer)

Discount Daboy is a customer who never buys a product and/or avail of service on full price but
only on a discounted rate. Said customer never shop for anything off-sale. It is difficult to retain Daboy as
a customer once the discount stops applying. An entrepreneur must offer an extra added value or even
go beyond the initial offering such as a good customer service to make Daboy have a second thought
before switching to the competitor. In reality, the group of Daboy has the biggest slice of the pie in the
total customers of any business. Daboy is the least loyal among customers as he moves easily from one

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 store to another when availing better offers. The more discounts, the more Daboy will visit the store and
makes purchase.

Loyal Lando (Loyal customer)

Loyal Lando is a satisfied customer that keeps coming back to one's store for more purchase.
Lando is a good brand's ambassador that can make recommendation of a business to his family and
friends, thus attracting a stream of new customers, A customer like him can help an entrepreneur grow
his business using word of mouth The role of an entrepreneur is to make certain that Lando stays happy
about the product and/or the service as well as the business. An entrepreneur may ask Lando what
makes him so pleased with the business and then replicate his experience with the rest of the customers.
Normally the segment of Lando is just 20% of the total customers, but it is responsible for the most part
of the company's profit. There should be regular communication with Lando who wants individual
attention on a polite and respectful way from the business.

Target Customer Group

A target market is a group of possible consumers or organizational buyers to whom a company

wants to sell its products and/or services. Therefore, it makes sense to focus all the marketing efforts to
reach them with the company's marketing message. An entrepreneur needs to identify exactly the pain
points and preference that his product and/or service offering would be resolving for the intended users.
It must be clear who those people that are in need or want of this offering whether they are individuals,
families or businesses. When the pain points and those concerned are determined then there is a
possibility that the entrepreneur has define his target market. There are some approaches in exactly
describing the perfect customer, namely:

1. Consumer or business - A product and/or service may be intended for a business- to-business (B2B) or
business-to-consumer (B2C) market.
2. Geographic - This is defining the target market according to the place where possible customers live or
work, take vacation or do business. For instance, in a local brick-and-mortar store, potential customers
may come from two-meter radius or inside the barangay.
3. Demographic - The target market here is describing by means of age, gender. income level,
educational background, marital status and other areas of an individual customer's life.
4. Psychographic - Psychographic characteristics are based from the intrinsic traits of a customer such as
personality, lifestyle, social status, AIO (activities, interests, opinions) and attitudes.
5. Generation - A lot of businesses these days define their target market based on which generation they
were born in, namely Baby Boomers, Gen X, Millennials and even Centennials.

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 6. Cohort - Some companies look for their target market using cohorts. A cohort is a group of subjects
who share a significant characteristic or typically subjects who experienced a common event in a selected
time period, such as birth or graduation.
7. Life stage - Other businesses use the stage of life for target marketing whether its infancy, childhood,
adolescent, adulthood or old age.
8. Behavioral - Another way of finding the target market is based on customer loyalty, occasion-based,
consumer usage and others.

Customer Personas

In order to solve a real user problem, an entrepreneur needs to have a clear problem statement in
mind. In order to write this problem statement, he first need to understand the users of his product
and/or service and their needs. The use of the user persona clarifies who the target users are. Knowing
the target users will help influence the features and design elements the entrepreneur chooses, making
his product and/or service more useful.

A user persona is a short fictional profile of an ideal user or customer An entrepreneur must need
to conduct market research to produce a brief combination of actual or acceptable customer details. This
user persona includes a fictional name and photo, important demographics, user needs and desires,
goals, motivations, activities, pain points, and quotes. Except for the name and photo, all details are from
real user data or customers that have been served and market research or customers that the
entrepreneur would like to reach. The important consideration here in creating a user persona is to take
in all items that are applicable to the product and/or service and those useful things to remember the real
needs and motivations of the people they are designing the offering for. The user persona must
accurately represent the company's users because it is essential to the overall value proposition.

The essential elements of each user persona is normally written in one page. Personas help find
the ideal customers in real life situation in order to test the product with real people. The entrepreneur
must be certain that each persona is specific, accurate and can be found in real life among customers.

In general, personas are helpful throughout the entire product development phase: from deciding
on which features to have in a prototype, to evaluating the end product.

Here is an example of a user persona that includes some of the common elements:
Table 8. User Persona Example - Gilda

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 continuation…

Once the entrepreneur is able to identify his user groups, he can now create user personas
through these steps:

Step 1: Create a Header

The header consists of a fictitious name, a picture and a quote which sums up what is the most
important to the persona that is related to the product and/or service offering. These simple features are
intended for memorability, so that the designer/ entrepreneur is focused on these users as he forms his
offering for them.

Step 2: Include A Demographic Profile

Although the name and picture are fictitious, the demographic profiles of the users are based from
facts and user research. These profiles include personal background, professional background, user
environment, and psychographics.

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 1. Personal background - The personal background consists of the age, gender, ethnicity, education,
persona group (working moms, single professionals, working students, etc.), and family status (single,
married with children, widowed, etc.).

2. Professional background - The professional background contains details like occupation, income level,
and work experience/s.

3. User environment - The user environment is the physical, social, and technological context of the user.
This section may include the technological devices the users have access to; and where they spend most
of their time such as in a corporate office or a home office.

4. Psychographics - Psychographics contain facts, for example attitudes, interests, motivations, and pain
points. This profile makes the entrepreneur understands the reasons for the user's behavior including the
use of the company's product and/or service.

Step 3: Include End Goal(s)

The end goal is the encouraging factor that stimulates action. It provides the details on the want/s
and need/s of users that can be satisfied by using the product and/or service offering of a company. The
end goals define the things the persona wants or needs that have to be fulfilled.

Step 4: Include a Scenario

An everyday life scenario is a story that describes the interaction of the user to a product and/or
service in a particular situation to reach his end goal/s. The scenario details the when, where, and how of
the story that happens. The scenario is normally written from the data gathered from the angle of the
persona and may describe important details about the future. The rule of thumb here is to omit that
information which will not affect or influence the final design.

Customer Journey Map

A most popular and favorite tool for imagining the customer's experience/s is the customer journey
mapping. A customer journey map is a representation of a typical customer's experience over time
instead of a snapshot. It is different from the discussed customer persona. The emphasis of a persona is
on the person, while a customer journey map highlights their experience. A customer journey map is
basically a story intended to give awareness of the customer's complex buying trip.

Most journey mapping format looks like a timeline that consists of a series of user actions. Then
the timeline is elaborated containing thoughts and emotions to form a story. This story is summarized
and refined to create visualization. The map helps to set where customers become frustrated on their

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 way to buying and beyond. This also combines the data on personas and user behavior. Each persona
may have his own map, which may serve as a reference point.

A well-thought-out customer journey map is very helpful but not all companies are taking full
advantage of it in order to discover more opportunities. Mapping customer journeys must every time aim
for business impact. Unfortunately, most customer journey map do not consider the company side and
focus only the customer side. It is vital to include both sides to map and cultivate the connections
between

the company and customers. It is also important to modify the map based on the unique needs of the
company and the goal that has been set.

Here is an example of the customer journey map is about an online grocery store.

Table 9. Online Shopping Customer Journey Map

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Key Components of a Journey Map

Journey maps come in all forms and dimensions. Regardless of their appearance, journey maps
have the following five key elements in common:

1. Actor - The actor is the viewpoint of the journey who is actually the persona or user. Coming from the
data gathered, the actors must be in relation with personas and their respective actions. Hence, there
must be one journey map for each persona in order to create a solid and rich story that captures their
particular journey.
2. Scenario + Expectations - The scenario is simply the situation which the journey map talks about in
relation to the actor's goals, needs and expectations. When the product is still in the development stage,
scenarios could be those that are projected. However, for existing products and services, scenarios
should be what are real. Journey maps are useful when scenarios are created as a series of events like

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 the online grocery shopping, designing a process or those that comprise a set of switches over time or
those that considers using several channels.
3. Journey Phases - Journey phases are the various high-level stages in the journey of an actor. These
phases are responsible for the information about actions, thoughts, and emotions in the map. Obviously,
for each scenario there would be different phases. Each company should have data in order to determine
the various phases for a particular scenario. Here are some examples, such as:
a. An ecommerce scenario - Buying a set of Bluetooth speakers may have discover, try, buy, use, seek
support phases.

b. A huge or expensive purchases - Test driving and buying a car may include stages such as
engagement, education, research, evaluation, justification.

c. A business-to-business (B2B) scenario - Rolling out an internal tool may consider the stages like
purchase, adoption, retention, expansion, advocacy.

4. Actions, Mindsets, and Emotions - These include behaviors, thoughts, and feelings the actor has during
the journey and that are drawn within each of the journey phases.

a. Actions - These are the concrete behaviors and steps engaged by users. This element is not meant to
be a granular step-by-step record of every isolated interaction. Rather, it is a story of the steps the actor
undertakes during that phase.

b. Mindsets - These correspond to the thoughts, questions, motivations, and information of the actor at
various steps in the journey. Ideally, these are customer exact words from research.

c. Emotions - They are drawn as distinct line across the journey phases. This line accurately indicates the
emotional "ups" and "downs" of the experience. This line gives the idea of the related layer of emotion
that the actor feels such as very happy against unhappy.
5. Opportunities - Opportunities are insights that are obtained from mapping. These opportunities they
can used to identify the ways of optimizing the actor’s experience. Insights and opportunities are useful
in getting knowledge from the journey map in terms of:

f. needs to be completed with this knowledge

g. owner of respective change
h. the biggest opportunities
i. ways of measuring improvements as they are implemented

Importance of a Customer Journey Map

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 Although it is true that an entrepreneur understands the needs and pain points of his customers,
but it could actually be surface-level. Although, in maximizing customer success, an entrepreneur must
focus on the essential steps such as breaking down the customer journey phase by phase, making
parallel each step with a goal, and restructuring the touchpoints.

Nevertheless, the intention is really to solve customers' problems and help them be successful in
using the product and/or service for a long period of time. Here is some importance of a journey map:

1. Refocus a company with an incoming perspective - With inbound marketing an entrepreneur may
discover his customers. Inbound marketing also known as content marketing is creating blog posts, social

media, infographics, white papers, email newsletters, and other content that people actually want to
read. Customers are actually interested and searching for this content. It catches the attention of
customers first and then later starts to buy things that they have read about. Through journey mapping,
an entrepreneur can understand what interest and help his customers about his company and website as
well as what drives them away. The company may construct the type of content which will draw the
attention of customers and help to keep them.

2. Form a new target customer base - On the part of the entrepreneur, it is risky not to know fully the
demographics and psychographics of his customers because he will not also correctly realize his
customer's journey. It's actually of time. money and effort to target a broad segment who shows interest
in the company's products and/or services. The needs and pain points of usual customers must be
researched on. Journey mapping will actually provide a good picture of the types of people who are
trying to accomplish a goal with the entrepreneur's company.

3. Form a customer-focused mindset all over the company - As a company becomes bigger, it turns to be
challenging to be as customer-focused like the customer service, support, and success teams. Most often,
sales and marketing goals are no longer what the customers want. Since, the journey map outlines each
single step of the customer journey from initial attraction to post-purchase support that concerns
marketing, sales, and service, then it can be shared with the whole company.

Steps to Craft a Customer Journey Map

The following are the steps in creating a customer journey map:

1. Set clear objectives for the map - Before creating a map, an entrepreneur should know the goals he is
directing the map and the experiences it is based upon. In other words, he may create a buyer persona.
As presented earlier in this chapter a persona is a fictitious customer with all of their demographics and
psychographics who embodies a typical customer. With a distinct persona drawn an entrepreneur he may
direct each phase of his customer journey map towards them.

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 2. Profile personas and define their goals - The next step is to make researches by getting valuable
customer feedback using questionnaires and user testing. Here only actual customers or prospects are
reached out to make feedbacks. Feedback must come to people who had shown interest in buying the
entrepreneur's products and/or services and those that have dealt with the company already or plan to
do so.

3. Emphasize the target customer personas - Although an entrepreneur must know those customer
personas that interact with his business, he needs to narrow down his focus to one or two of them. Each
customer has his own journey map that takes a definite path with his experience in the entrepreneur's
company. Grouping excessive number of personas into just one journey may result to inaccurate
disclosure of the customers' experience. For an entrepreneur drawing his first journey map, the rule of
thumb is to

select the most common customer persona and study the path he normally takes when doing business
with the company. A marketing dashboard may be created to make comparison of the different personas
that would fit in with the journey map. Personas that have been eliminated could still be reconsider
through a new map.

4. Write down all the touchpoints - Touchpoints are those places in the website that customers may use
to interact with the company. An entrepreneur must write down all the touchpoints his customers and
prospects are presently using and those that they must use based from research. This step is vital in
creating a customer journey map since the insights into what action his customers are doing are revealed
here. The touchpoints are tools that can help an entrepreneur understands the comfort and purposes of
customer journeys. An entrepreneur may consider others way in which a customer may come across his
online such as social channels, paid ads, e-mail marketing and third sites or mentions party review

a. Actions - An entrepreneur may write down all the actions his customers are doing as they interact with
his brand or company. He may Google search for the keywords or may click on an email sent to him. It is
alright to have a long list of actions.
b. Emotions and motivations - Every action that a customer takes is triggered by an emotion. Said
emotion/s may change based on which part of the journey a customer is at. Normally, what drives the
emotion of a customer is a pain point or problem. The knowledge on these emotions and motivations will
give the fitting content at the right time so that there will be a smooth customer's emotional journey
through the entrepreneur's brand,
c. Obstacles and pain points - Here the road blocks that are preventing the customer to take the
preferred action must be revealed. Cost is one of the prime problem, High shipping rates may cause a
customer not to buy the product even he so desires it. Emphasizing these possible difficulties in the
customer journey may help lessen them.

5. Identify the elements of the map to show There are several types of customer journey maps with
corresponding benefits. Here are some of them

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 a. Current state - This is most commonly used type of customer journey map It tries to create in one's
mind the actions, thoughts, and emotions that customers presently experience while interacting with the
entrepreneur's company. This is best applied for continuously refining the customer journey

b. Day in the life - This type of customer map tries to create in one's mind the actions, thoughts, and
emotions that customers presently experience when he participates on daily basis whether it includes the
company or not. It offers a wider viewpoint into the lives of the customer and their pain points in real life.
This is best applied for fulfilling unmet customers' needs before customers even know they exist.

c. Future state - This journey map is designed by an entrepreneur to imagine the actions, thoughts and
emotions of his customer's experience as the latter interacts with his company in the future. The
reference

is the present experience though the plan heads towards what the entrepreneur wants the customer
journey to be. The best application of this map is illustrating vision and planning a clear objective.

d. Service blueprint - This journey map starts with the simple version of the above-mentioned maps. The
later add further those factors in charge of providing the experience such as people, policies,
technologies, and processes. This is best applied when determining the main reasons of the present
customer journeys or determining the steps required to accomplish the preferred future customer
journeys,

6. Identify the resources on hand and those that are still needed - Every part of the business could be
touched by the customer journey map. Obviously, the entrepreneur must emphasize all the resources
that goes with the customer experience. Hence it is necessary for the entrepreneur to come up with the
inventory of the resources he has on-hand and those resources he will be needing to improve the
customer's journey. For instance, if the customer service does not have the tools to appropriately follow
up with customers after a service interaction, then the entrepreneur must invest on these resources.

7. Experience the customer journey himself - After designing the customer journey map, the
entrepreneur must analyze the results himself. For instance, he must know the number of people clicking
his company's website but never really make a purchase. This will make him decide on how he could
better support customers. The results of the analysis can confirm where customer needs are being
unmet. With this a valuable experience can be guaranteed and that customers are able to find solutions
to their problems through the entrepreneur's company products and/or services. Mapping the customer
journey remains hypothetical unless the experience has been tried by the entrepreneur himself. The
entrepreneur may follow the journey of each personas using their social media, reading their emails and
searching online.

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 8. Create the needed changes - The analysis of data can give the entrepreneur the idea on what his
website must be. The entrepreneur may create the applicable changes to his website to accomplish his
goals for the business. He may place numerous distinct call-to-action links. He may also write vivid and
detailed descriptions of each product to make its purpose and benefits clear to the customers.

Market Sizing

The market size refers to the aggregate number of possible buyers of a product and/ or service in
an industry and the aggregate revenue that these sales may produce over the course of a year. It is vital
and beneficial to know the possible market size prior to the introduction of a new product, a new product
line or new line of business. This would provide a better understanding of the entrepreneur's investment
worthiness in terms of time, money and effort. For an existing type of business, one may refer to the
existing sales number in an industry to know the market size.

The market size is divided into four broad categories, namely:

Figure 7. Four Categories of Market Size

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1. Potential Available Market (TAM) - The potential available market is the total possible value that
represents the global market of products and/or services sold over a definite timeframe without any limits
of geography and other factors. This assumes the 100% market share.

2. Total Addressable Market (TAM) - TAM is the potential value of product and/ or service sold to a
particular customer segment. This shows the number of customers in the core market around the world
who are in need of the entrepreneur's product and/or service offering TAM is irrespective of competition.
These may not necessarily be those who can afford to buy the offering but they must have he need of
the item. Hence, in estimating the TAM, the type of customers who are in need of the product and/or
service and their volume requirement must be known. An entrepreneur in order to know his TAM must

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 define first his own company and should know where his company is heading to. For instance, the TAM
for Uber is not merely the size of thet is heading to includes the whole transportation industry. Say an
entrepreneur for his service business wanted to know his TAM. In this case his TAM consists of all people
who have a need for help doing tasks and running errands in his community. Based from market
research, if his community has 150,000 constituents, the TAM could probably be 33% which is 50,000
people. This percentage is obtained by excluding people who are below 18 years of age and those people
who has no capacity to buy his service offering.

3. Serviceable Available Market (SAM) - SAM is the subset customer of the total addressable market
(TAM) who can be reached and ready to buy goods or services using a one revenue stream/channel.
Going back to the example of an entrepreneur with a service business, his SAM is the slice of that 50,000
who he is targeting in his present business model. He may qualify to serve only those people between
the age of 35-55 years old with small children and disposable income. With these limitations, he may
realize that this is 40% of his TAM which is 20,000.

4. Serviceable Obtainable Market (SOM) - This is the subset of the SAM that will realistically get to use a
product and/or avail of the service. This is the target market who the entrepreneur shall primarily sell to.
Here, there is much consideration to strategic development of the market and the competitors' actions.
An entrepreneur should have a strong understanding of his local market, a deeper knowledge of his own
company and what he can deliver. When starting a business, simple things such as the amount of traffic
that is on the road may really have a big impact. Using again the example of the entrepreneur with a
service business, he must estimate the portion of his SAM that his business model can realistically serve
at present. He may have himself and his two employees who can serve people within a 2-kilometer radios
say 10% of his SAM which he can reach in the first 2 to 3 years of operation. So this means his SOM is
2,000 people a year.

Market Sizing Approaches

There are two ways to sizing a market which are the top-down analysis or bottom-up analysis. In
order to guarantee the correct reliability of the data and identify any areas that will need more research
for understanding, the combination of these approaches is recommended.

Top Down

This type of sizing is normally completed by using demographics such as company size, industry
type, location, population, age, income and others. It requires the determination of an existing
dependable top-line demand estimate. For this estimate, there are several sources that the entrepreneur
can turn to. Of course, each has its own pluses and minuses that need to be well-adjusted in the
performance of this analysis. Most of the times, these approaches are combined to get the best result.

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 1.Multi-client research from publishers - There are a lot of publishers on the market selling products
with different range underlying research and accuracy such as The Freedonia Group, Packaged
Facts, and Simba Information. Hence if the entrepreneur decides to use this method, he must get
his information from reliable sources which is the MarketResearch.com which consists of those
publishing brands mentioned above. In the Philippines, an entrepreneur may go to Esomar
Directory to find market research companies such as ASCEND, Cogencia, InsightsImpact, IPSOS
Philippines and the rest.
Table 10. Pluses and Minuses of Research Publishers
Source: freedoniagroup.com

Pluses Minuses
1. Often the quickest way to get an estimate 1. Multi-client studies are intended to provide
demand a broad overview of large industries.
2. The scope and segment definitions in multi-
client studies may not align with those
desired.

2.Apparent consumption calculated from government production and trade statistics - There are
dependable industry shipment/production statistics and import/ export data for a given industry
using sources such as Philippines Trade Data, Philippine Statistics Authority, Foreign Trade
Statistics of the Philippines and even Department of Trade and Industry. It is possible to estimate
demand through estimating apparent consumption. The formula for this is:

Apparent Consumption = Domestic Production-Exports + Imports

Table 11. Pluses and Minuses of Government and Trade Stats

Source: freedoniagroup.com

Pluses Minuses
1. Government and trade statistics are widely 1. Multi-client studies are intended to provide
available a broad overview of large industries.
2. Government statistics bureaus are trusted 2. The scope and segment definitions in multi-
sources of data client studies may not align with those
desired.
3. Government statistics bureaus are trusted 3. Trade codes for product classifications may
sources of data vary by country.

3.A production census of leading suppliers in markets with a concentrated supply base - When the
supply base consists of only few suppliers such that they are less than ten (10), top-line demand
estimates can be established easily by adding all the sales or production of leading manufacturers
of the product being studied.

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 Table 12. Pluses and Minuses of Leading Suppliers
Source: freedoniagroup.com

Pluses Minuses
1. A good method for estimating demand 1. May be dependent on information
when no other top-line estimates exist, obtained from primary research Given the
the market does not lend itself to bottom- sensitive nature of sales information,
up analysis and the supply-base is there is a risk respondent will not provide
concentrated. this information
2. Provides a way to cross-check 2. Data availability may be limited when
estimates derived from other top- down the leading suppliers are privately held
approaches or those derived through companies or small divisions within large
bottom-up analysis publicly held companies.

Bottom Up

The bottom-up is only considered if there are no dependable sources of top-line demand present.
However, if this approach can give a more dependable estimate though analysis of product consumption

in relation to a direct indicator (the product being consumed) then this can be useful. Compared to a top-
down methodology, this approach can be more time consuming. It is also sensitive on the face of small
assumptions that falls through the analysis. In this method, an entrepreneur may be able to make
extrapolation until he reaches an applicable scale. Here are two examples of how an entrepreneur can
arrive at a market size estimate using a bottom-up approach:
Table 13. Examples of Bottom Up Approach
Source: freedoniagroup.com

Product Indicator Assumption Demand

Estimate
Windows During 2017, 1,200 new Newly Demand for
homes were constructed constructed windows was
in the US homes require some 18M units
on average 15 in 2017
windows each
Paper Towels In 2017, there were An average Demand for
240,000 quick service quick service paper towels
restaurants restaurant used in quick
spends $500 service
per year on restaurants was
paper towels some $120M in
2017

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 It is actually recommendable to use both approaches in solving a problem although often they generate
dissimilar results. However, said results must be close enough to offer a more precise solution.

What is Entrepreneurship Marketing

Entrepreneurial marketing is more about a marketing spirit that distinguishes itself from traditional
marketing practices. This type of marketing for entrepreneurs avoids many of the fundamental principles
of marketing are usually aimed for big and well-known companies. It makes use of new and non-
traditional marketing practices that makes entrepreneurs stand out from their competitors.

Entrepreneurial marketing campaigns try to emphasize the company's greatest strengths while stressing
their value to the customer. Here are some of the marketing strategies that makes a lot of entrepreneurs
successful when use in combination:

1. Relationship marketing - The emphasis of this is on building a solid connection between the brand and
the customer.
2. Expeditionary marketing - This involves forming markets and creating innovative products. Here the
entrepreneur's company acts as a leader rather than a follower.

3. One to one marketing - Here customers are marketed to as individuals. All marketing efforts are tailor-
fitted.
4. Real time marketing - This makes use of the power of technology to interrelate with a customer in an
actual time.
5. Viral marketing - It places marketing messages on the Internet like Facebook and Instagram so they
can be shared and expanded on by customers,
6. Digital marketing - This considers leveraging the power of Internet tools like e-mail and social
networking to back-up marketing efforts.

In a journal article written by Michael H. Morris, the concept of entrepreneurial marketing consists
of six elements, which are:

1. Customer intensity - This feature concentrates on the enthusiasm, passion, zeal, and belief in
marketing that makes the company successful. It is believed that a customer-intensity component makes
stronger the primary values of the company and the passion for the customer.
2. Continuous innovation - An entrepreneurial company must constantly create innovative ideas and
transform them into new or improved products and/or services or processes.
3. Strategic flexibility - An entrepreneurial company must display an enthusiasm to always evaluate and
fine-tune its strategies, action plans, techniques of resource allocation, structure, culture, and
management systems.
4. Calculated risk-taking - Risk-taking refers to pursuing novel opportunities. Entrepreneurs take
calculated risks, but some can be serious for the future of the company.

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 5. Proactiveness - Entrepreneurs are conscious of the significance of the external marketing environment,
however, they do not take it as a given. They recognize it as a horizon of possibilities. Simply,
entrepreneurs try to reassess the elements of the external environment to lessen its ambiguity, moderate
reliance and exposure of the company, and/or transform the environment in which the company
functions.
6. Resource leverage - Entrepreneurs' ambitions usually go beyond their resources; hence they are
obligated to utilize their resources in the best possible way. They control their resources so that they ca
use them longer than others have used them in the past. They use resources that others do not regard
as resources They use other people's/companies' resources to accomplish their own goals. They combine
one resource with another to produce a greater shared value,

Creating a Personal Brand

For individuals who form their businesses using their expertise such as an author, public speaker,
coach, consultant and freelance, the idea of personal branding is familiar and comes naturally for them. It
makes sense too for an entrepreneur to build a reputable personal brand.

A personal brand is the one that differentiates an entrepreneur from the rest of his competitors.
This type of branding forms a lasting impression on the minds of the customers about the quality of his
product

and/or service. Actually, this convincing personal brand draws the target customers to buy from the
company which makes it a lucrative and sustainable business.
In personal branding customers do not think of the company but the talented founders behind
them. For example, Apple is Steve Jobs, Microsoft is Bill Gates and Facebook is Mark Zuckerberg.
Personal branding is not only meant for big companies. It is also applicable for startups or new ventures
because customers shall gauge the value of the offering based on this brand. An entrepreneur must
remember that his product and/or service is the "what" of his business and personal branding is the
"why".

Here are some of the benefits of personal branding:

1. Trust and authority - With a personal brand an entrepreneur can build trust with his customers and
position himself as an authority and a thought leader in the industry.
2. Get featured in media - With a personal brand, it easier for an entrepreneur to pitch and be found by
media like online publications, magazines, television, radio, podcasts, and others. The media is in
continuous search of experts that can share their visions with the audience.
3. Build a network - With a personal brand it clearly articulates who the entrepreneur is, what he does,
and how he helps others. The brand makes it easier for other people and other entrepreneurs to see
value in connecting with the owner of the business. A personal brand can leverage to build a network,
both online and offline, quickly and effectively.

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 4. Attract more customers - Building a personal brand that positions an entrepreneur as the go-to expert
in a particular industry or niche helps him to draw a lot of his ideal customers. When an entrepreneur is
positioned as an expert, it's also easier for people to refer customers to him.
5. Premium pricing - With a strong personal brand charging premium prices for products and services is
justifiable. Without a brand, an entrepreneur becomes a commodity that competes on price. Besides
there will always be competitors that can beat his price.
6. Create a lasting platform - Over time, a business will surely evolve. An entrepreneur may even jump to
multiple businesses in diverse industries over the course of his career. A personal brand stays with him as
he moves from one venture to the next.

Some social media platforms can do a lot for an entrepreneur's personal branding. Here are some of
them:

1. Linkedin -This network is really designed to let others know who are professional. It can display
information such as school graduated from, line of study and expertise, work history, passion, and the
likes, basically, everything that has to do with being a professional. When used effectively this can create
a powerful background for the current business and what a company can provide to its customers. The
entrepreneur should always make his profile, complete, detailed and updated. He must engage his
connections with having regular posts. He may join with other personal and businesses interests. He may
make write ups about something that shall display his expertise especially about his new company.
knowledge about something, ideally about the business of your startup company

2. Twitter - This is another influential and popular platform for posting business news and developments.
This can also be used for simply sharing information Hence, this social channel is a very powerful. for
personal branding. It allows an entrepreneur to communicate on current issues through comments which
may have something to do with his business. Twitter can also be a great platform for starting a
conversation besides sharing important matters with customers and employees. Using hashtags, an
entrepreneur may get people into a particular topic, discover possibilities and stir motivation.
3. Pinterest - This is perfect for communicating the entrepreneur's numerous interests. The graphic
nature of Pinterest makes it distinctive. An entrepreneur can post high-definition photos of his products
here, or something casual about what his business does. He can even pin his packaging and logo,
besides interesting and beautifully made infographics to relate to his personal brand or his business.
Every now and then, an entrepreneur can also pin the beautiful places he had visited by adding a more
personal touch to his online persona.

Course Code & Description: GE112 – THE Prepared by: RACQUEL Z. CARANTO, LPT
ENTREPRENEURIAL MIND Teacher Page 2 of 9
Course Code & Description: GE112 – THE Prepared by: RACQUEL Z. CARANTO, LPT
ENTREPRENEURIAL MIND Teacher Page 2 of 9