ENTREPRENEURSHIP ● Defining the Target Market

● Setting the Market Goals and Objectives

ANN CALUPAS CUTIE ● Developing Marketing Strategy and
Action Programs
● Preparing the Budget for the Action Plan
LESSON 1.6 MARKETING PLAN
7P’S OF MARKETING
MARKETING PLAN - is a document containing
the marketing objectives, marketing strategies 1. POSITIONING
and the activities that will undertake to execute
these strategies; - Three overlapping objectives;
- must consider the overall goals of the a. It has an enterprise perspective
enterprise, which must take precedence over the b. It has a competitive perspective
specific marketing objectives; c. Takes the customers’ perspective
- must also be based on valid assumptions
about the financial resources, physical MARKET DIMENSIONS:
resources and human resources that will be LATITUDE MARKET DIMENSION - it lays out
available to the business venture; what's important to the different customer
- must have specific and measurable objectives segments from their differing point of view
that will allow the entrepreneur to monitor LONGITUDE MARKET DIMENSION - it
performance and control business activities; represents the product features and attributes of
- must also anticipate certain scenarios that will competitors in the marketplace
allow the entrepreneur to adjust his strategies
according; and -should be mindful of the main value proposition
- have implications on the operations plan and (MVP)
on the financial plan as well - each of the Ps of marketing must communicate
- brand of each product
COMPETITOR ANALYSIS
3 PURPOSES OF BRANDING
7P’S OF MARKETING
1. To differentiate the product from other
1. Positioning products
2. Product 2. To avoid a commodity image for the
3. Packaging product
4. Place 3. To fill a space in the consumers mind
5. People that would prevent other products from
6. Promotion occupying the same space
7. Price
2. PRODUCT - a product is the tangible good or
MADI Questions of Dr. Ned Roberto the intangible service that enterprise offers to its
- It provides a useful way of identifying customers in order to satisfy their needs and to
unmet or unsatisfied customer needs produce their expected results
and expectations
- Interview questions for customers or in 4 GENERAL TYPES OF PRODUCTS THAT
an FGD ARE MARKETED BY ENTERPRISE

M- WHAT IS MISSING 1. Breakthrough products- offers

A- WHAT IS ANNOYING completely new performance benefits
D- WHAT IS DISAPPOINTING - May double the performance at half the
I- WHAT IS IRRITATING cost
- Need a higher level of customer
WHAT ARE THE STEPS IN PREPARING THE education and orientation
MARKETING PLAN - Common examples of breakthrough
products are borne out of the
● Assessing the Business Situation biotechnology held particularly in terms

1
 of coming up with new vaccines to - Locational features such as parking
protect people from certain viruses spaces, foot access, creature comforts.
2. Differentiated products - tries to claim a
new space in the mind of the customer ★ The cost of buying or renting,
different from the spaces occupied by renovating, operation the location
existing products bu there would be ★ Customer volume, drop-in rate and
additional benefits on special aspects of sales conversion
the product ★ Revenues based on the volume and mix
3. Copycat products - offering more of goods and services expected to be
physical space in the shelves, lower sold at certain prices
prices, easier access, and promotional ★ Profits
freebies.
4. Niche products- they are products with ➔ Image and location conditions
lower reach, lower visibility, low prices ➔ Exact fit to target customers
and lower top of mind/ They are content ➔ Clustering of competitor establishments
to play minor roles in specific and ➔ Future area development
smaller market segments ➔ Fiscal and Regulatory requirements

3. PACKAGING 5. PEOPLE - are the ultimate marketing

Purposes: It identifies the product, describes its strategy
features and benefits, and complies with - To create customers awareness
government rules on specifying its contents, - To arouse customer interest
weight, chemical composition, and potency. It - To educate customers as they evaluate
provides easy brand identification for the their buying choices
consumers - To close the sale and deliver the
- It differentiates the product from its products
competitors and even from its other ➢ Availability
brand offerings ➢ Accessible
➢ Adequate
Packaging does not refer only to the wrapper or ➢ Acceptable
container of the product. It can mean the bundle ➢ Affordable
of products or services that are put together to
attract and delight customers and also mean the 6. PROMOTION - encompasses all the
terms and conditions attached to the sale or direct communication efforts of the
after-sale servicing of the product enterprise such as advertising, public
relation campaigns, promotional tours,
● Lengthens the lifespan, physically product offerings, point of sale displays,
protects, and extends the usefulness of websites, flyers, emails, letters,
the product telemarketing and other
● Recyclability and biodegradability are
now a major concern of packagers and EFFECTIVE PROMOTION DEPENDS ON 3 -
consumers alike CRITICAL FACTORS
● Increased the cost of packaging and,
therefore the price of the product 1. The credibility of the communication
2. The message and the medium of the
4. PLACE - in finding a good location, one needs message
to consider the ff. 3. The receptiveness of the audience to all
- The number of customers that is being communicated
- The density or number of customers per
unit area 7. PRICE - major factor for the customer in
- The access routes to alternative buying a product, it is not only factors such as in
locations and their traffic count in those the of buying premium products
routes
- The buying habits of customer or where ● Non-price factors outweigh the price
they buy, at what time and how frequent factor whenever a customer is buying a
premium item

2
 ● Finding the right price for a product is,
therefore, not a simple matter of adding
a mark-up on the cost of a product or
service, as some companies do.

1. Profit maximization
2. Revenue maximization
3. Market share maximization
4. Attainment of the desired prestige or
quality of leadership
5. Penetration, survival, or liquidation
6. Scarcity pricing or market skimming
7. Cost recovery
8. Subsidy pricing
9. Marginal pricing

LESSON 1.7: THE ORGANIZATIONAL PLAN

WHAT IS AN ORGANIZATION PLAN?

- Identifies the form of ownership the
business venture will take;
- Provides a background of the
management team; describes the
organizational structure, including the
management teams roles,
responsibilities; outlines the planning,
decision-making, monitoring, and
evaluation processes; and spells out the
role of the board of advisers, among
others.
- Must provide sufficient information to
assure potential investors and creditors
that the money they are asked to pour
into the business will be in good hands

THREE TYPES OF BUSINESS

ORGANIZATIONS

1. SERVICE BUSINESSES - provide

services rather than products to
customers
2. MERCHANDISING BUSINESSES - sell
products they purchase from other
business to customers
3. MANUFACTURING BUSINESSES - TWO FUNDAMENTAL CONCEPTS FOR
change basic inputs into products that ORGANIZATION STRUCTURE
are sold to customers
1. DIFFERENTIATION
2. INTEGRATION

VESTED IN THE HUMAN RESOURCE (HR)

UNIT TAKS: STAFFING

3
 1. RECRUITMENT - which involves ● Intelligence quotient test
activities related to the development of a ● Aptitude test
pool of applicants for jobs in the ● Motor and physical abilities test
organization ● Personality test
2. SELECTION - which is related to ● Achievement test
decisions on who to hire from the pool ● Work sampling test
created by recruitment task; ● Background and Reference check
3. TRAINING AND DEVELOPMENT -
which involves the continuous BUSINESS ADVISERS
development of the workforce - Who provide their inputs and insights on
4. PERFORMANCE APPRAISAL - the how to run the business
measurement of an employee’s - This allows the owners of the new
performance; and venture to draw upon these individuals
5. REWARD SYSTEM DESIGN - which expertise and extensive business and or
includes the plans for monetary and managerial experience
fringe benefits of employees - The business owners can engage their
adviser through face-to-face meeting or
JOB ANALYSIS through phone call
➢ Is the procedure through which the - Business advisers who are well-
duties of given job positions and the respected in the community might also
characteristics of people who should fill be able to rub on their goodwill on the
them are determined business venture that they are
1. The person to hire supporting, aside from linking then to
2. The compensation for the job reliable suppliers and prospective
3. Job standard as basis for actual performance markets
4. Training and development programs
5. Unassigned tasks and duplication of LESSON 1.8 FINANCIAL PLAN
assignments
WHAT IS FINANCIAL PLAN?
JOB DESCRIPTION - A summary of the projected sales, the
➢ Is a list of what the job entails cost of goods sold, and general and
administrative expenses of the business
JOB SPECIFICATION - Cash inflows and outflows
➢ Is a list of the kind of the people for the - Assets, liabilities and the potential
job retained earnings
1. Work activities
2. Human Behavior PREPARING FINANCIAL PROJECTIONS
3. Tools used - must make reasonable assumptions about
4. Performance Standards revenues, costs, and expenses.
5. Job context - must prepare a sales forecast and an operating
6. Human Requirements budget, which will feed into the projected income
statement.
THE RECRUITMENT PROCESS FLOWCHART
PROJECTED INCOME STATEMENT
Determine the job positions to be filled - build a - The sales forecast and operating budget
pool of job applicants - require the job applicants illustrated will then be transferred to the
to submit application forms - screen the projected income statement, which summarizes
applicants - call selected applications for tests, the profit or loss the company expects to
including medical and drug tests - shortlist generate within the year.
applicants for interview - interview applicants; - also includes an estimate of the cost of goods
make final choice - hire chosen applicants sold.

CASH FLOW PROJECTIONS

DIFFERENT TESTS ON THE - Cash inflows and outflow
SPECIFICATIONS OF THE JOB

4
 - Profit and cash flow are not the same LESSON 1.9 OPERATIONS PLAN AND
thing HUMAN RESOURCES MANAGEMENT

CASH FLOW FROM OPERATING ACTIVITIES WHAT IS OPERATION PLAN? - the operation
- income statement section of your business plan is where you
-depreciation explain - in detail - your companies’ objectives,
-accounts receivable goals, procedures, and timeline.
- inventory
- prepaid expenses YOUR OPERATION PLAN SHOULD BE ABLE
- accounts payable TO ANSWER THE FF:
- capital expenditures
- debt payments WHO - the personnel or departments who are in
- dividends paid charge of completing specific tasks
- sale of stock WHAT - a description of what each department
is responsible for
PROJECTED BALANCE SHEET WHERE - the information on where daily
- Summarizes the assets, liabilities, and operations will be taking place
net worth of the business. WHEN - the deadlines for when the tasks and
goals are to be completed
KEY TERMS: HOW MUCH - the cost amount each department
needs to complete their tasks
ASSETS - refer to everything that the business
owns that can be used to create value 4 M’S OF OPERATION
1. MANPOWER - this refers to the
a. Current assets - include cash and other workforce, whom will help a business to
things that can be easily converted into produce more products.
cash or consumed in the operation of - An entrepreneur needs to hire good and
the business in less than a year competent people to produce quality
b. Fixed Assets - like land, building or products
equipment, which the business can use 2. MACHINE- refers to the devices and
over a long period of time. equipment used to perform specific type
of work and usually uses energy
LIABILITIES - represent everything that the (Electricity) to perform a task
business owes to banks and other creditors - For example: in food industries, food
processors are indispensable in
a. Current Liabilities - must be paid within producing products.
a year 3. METHOD - this refers to the ways of
b. Long-term Liabilities 0 must be paid producing a particular product from raw
beyond one year materials
- This may refer to tradition method such
OWNERS’ EQUITY/ SHAREHOLDERS’ as producing the product manually or it
EQUITY - excess of all assets over all liabilities, may be machine-assisted and
it is also known as the net of the worth of the automated
business 4. MATERIAL - pertains to anything used
as inputs to production or
BREAK EVEN ANALYSIS - refers to the volume manufacturing.
of sales at which the business neither makes a - It can be finished product or an
profit nor incurs a loss and indicates how many unprocessed raw material
units of the product the business must sell to - Raw materials are first harvested,
cover both variable and fixed costs and extracted and processed to produce
expenses. semi-finished materials.

Breakeven Quantity (BEQ)= Total fixed cost PRODUCTION - the economic process of
(TFC) divide Selling Price-Variable cost/unit converting raw materials into products suitable
(VC/U) for exchange.

5
WHAT IS A GOOD PRODUCT DESCRIPTION?
- For starters, an effective product
description will boost sales on your site
or in your business plan.
- A good product description reflects your
brand and your target audience. It can
really help bridge the gap between what
your brand is and who your customers
are.

HOW DO YOU WRITE A GOOD PRODUCT

DESCRIPTION?
1. Answer important questions before FIVE STAGES THAT GO THROUGH WHEN
writing PURCHASING A PRODUCT
2. Know your audience 1. RECOGNIZING A NEED OR WANT - Can be
3. Focus on benefits and features triggered by internal or external stimuli
4. Use storytelling 2. SEEKING OR RETRIEVING INFORMATION
5. Make it easy to read use bullet points -
6. Use photos and videos - choice set
- consideration set
5 THINGS TO CONSIDER WHEN CHOOSING - awareness set
A NEW SUPPLIER 3. EVALUATING CHOICE
- rational decisions
1. Supplier cost - respond emotionally to the marketing stimuli
2. Quality - beliefs and attitudes
3. Reliability and previous experience 4. MAKING A PURCHASE -WHERE TO BUY
4. Shared culture IT?
5. Location WHEN TO BUY IT?
HOW MANY ITEMS TO BUY IT?
HUMAN RESOURCE MANAGEMENT - Human HOW TO PAY FOR IT?
resource management (HRM) is the practice of 5. ASSESSING THE PRODUCT OR SERVICE
recruiting, hiring, deploying and managing and EXPERIENCE -disappointed (nadismaya)
organizing employees. satisfied (nakontento)
delighted (nasiyahan)
HIRING EMPLOYEES STEP BY STEP
● Evaluate what positions you need to fill CULTIVATING CUSTOMER RELATIONSHIPS
● Figure out your recruiting strategy
● Write the job description
● Post job listings and sift through
applicants
● Follow up with the interviewees.
● Extend the job offer
● Conduct a background check

LESSON 1. 10 MANAGING THE MARKETING

FUNCTION

6
 ➔ assesses the performance of production
in terms of effectiveness, efficiency,
quality, timeliness, dependability,
flexibility, cost and other criteria.

OPERATIONS MANAGER
● Warehousing
● Maintenance
● Inventory
● Quality control: passed inspection

ASSESSING THE PERFORMANCE OF A

BRAND - category made by a particular BUSINESS ENTERPRISE (PERFORMANCE
company EFFECTIVENESS)
- unique design - Amount and quality of production
- sign - Relate it with the needs of the
- symbol customers
- words
- Can also be assessed in terms of
TO BUILD BRAND EQUITY quality, speed, dependability and
- IT must serve to identify and differentiate the flexibility
brand
- it must engage in marketing programs aiming ASSESSING THE PERFORMANCE OF A
at building the brand BUSINESS ENTERPRISE (PERFORMANCE
EFFICIENCY)
CHOOSING BRAND ELEMENTS - Through the use of resources
- MEMORABLE (general rule: short brand - Demand of the customers
names are easy to recall) - Profitability and survival in the market
- MEANINGFUL
- LIKEABLE FRAMEWORK FOR ANALYZING THE
- HUMOROUS OPERATIONS OF AN ENTERPRISE
- BUZZ MARKETING
-SOCIAL MEDIA AMRKETING SYSTEMS APPROACH - input - process -
output
LESSON 1.11 MANAGING THE OPERATIONS - Resource inputs (5ms)
FUNCTION 1. Materials
2. Machinery
OPERATIONS MANAGEMENT - A component 3. Manpower
of management 4. Method
that deals with planning implementing 5. Money
and monitoring the process of
producing goods and services. TWO MAJOR CATEGORIES OF RESOURCE
INPUTS
OPERATIONS MANAGER 1. Intermediate Inputs
(Raw materials)
➔ oversee the resources available to the 2. Factor Inputs
enterprise for production activities; (Labor, capital, technology)
➔ plans the structure of production by
identifying the output to be produced, PROCESS
the resources needed, and the ➢ Physical transformation
procedures on how these resources are ➢ Exchange transformation
mixed to produce a good or service; ➢ Locational transformation
➔ supervises the process of combining ➢ Extractive transformation
materials together with other inputs ➢ Information transformation
according to the technology utilized to - second component of the IPO
produce the identified output; and framework;

7
 - refers to the various forms of OPERATIONS MANAGER
transformation that factor inputs - oversee the resources available to the
perform on the materials; and enterprise for production activities;
- determined by the type of commodity to - plans the structure of production by
be produced and identifying the output to be produced,
the technology being used in production. the resources needed, and the
procedures on how these resources are
OUTPUT mixed to produce a good or service;
❖ Outputs from physicals transformation - supervises the process of combining
❖ Outputs from locational transformation materials together with other inputs
❖ Outputs from information transformation according to the technology utilized to
❖ Outputs from exchange transformation produce the identified output; and
❖ Outputs from extractive transformation - assesses the performance of production
in terms of effectiveness, efficiency,
VALUE CHAIN APPROACH - traces the value quality, timeliness, dependability,
of a commodity in terms on how factor inputs are flexibility, cost, and other criteria.
adding value to the raw materials
ASSESSING THE PERFORMANCE OF
A BUSINESS ENTERPRISE
(PERFORMANCE EFFECTIVENESS)

- Amount and quality of production

- Relate it with the needs of the
customers
- Can also be assessed in terms of
quality, speed, dependability and
flexibility
- Through the use of resources
- Demand of the customers
- Profitability and survival in the market.
PRODUCTIVITY - is a concept of measuring
output
relative to the value of inputs used in
production.

MEASUREMENT:
Average productivity of labor: Value of
total production per unit of labor input
• Average productivity of capital: Value of
total production per unit of capital input
• Marginal productivity of labor:
Additional output per additional unit of
labor input
• Marginal productivity of capital:
Additional output per additional unit of
capital input

LESSON 1.11 MANAGING THE OPERATIONS

FUNCTION

OPERATIONS MANAGEMENT
- A component of management
that deals with planning implementing
and monitoring the process of * Two Major Categories of Resource Inputs
producing goods and services. - Intermediate Inputs
(Raw materials)

8
 - Factor Inputs
(Labor, capital, technology) MEASURES OF COST:
AVERAGE COST
- total cost of production per unit of output
MARGINAL COST
- cost of production per additional
unit of production

FOUR PERSPECTIVES OF A FIRM

- Learning and growth perspective
- Business process perspective
- Customer perspective
- Financial perspective
VALUE CHAIN APPROACH
traces the value of a commodity in terms on how LESSON 1.12 MANAGING THE FINANCE
factor inputs are adding value to the raw FUNCTION
materials.
PRINCIPLES OF FINANCIAL MANAGEMENT
Principle 1- An investment project with a higher
return may also have higher risks.
Principle 2- The value of money changes over
time.
Principle 3- Cash, not profit, is the basis for
creating value.
Principle 4- In creating value, it is important to
consider net or incremental cash flows.
Principle 5- In a competitive market, it is very
PRODUCTIVITY difficult to reap huge profits.
is a concept of measuring output Principle 6- You cannot outsmart an efficient
relative to the value of inputs used in capital market.
production. Principle 7- Creating value for the firm is
tempered by the agency problem.
MEASUREMENT: Principle 8- Taxes may influence business
Average productivity of labor: Value of decisions.
total production per unit of labor input Principle 9- Not all risks are created equally.
• Average productivity of capital: Value of Principle 10- In creating value for the firm, the
total production per unit of capital input financial managers must be ethical in their
• Marginal productivity of labor: actions and decisions.
Additional output per additional unit of
labor input
LESSON 1.13 Introduction to Business
• Marginal productivity of capital: Implementation
Additional output per additional unit of
capital input A Very Good Business Plan

9
Purpose growth
• Entice partners, investors,
and bankers to fund a Use leadership techniques
business venture
• Communicate what the The role of leadership is vital in ensuring that
enterprise is all about, what new business
market it wants to serve plans and the implementation actions associated
• Show what financial returns with them
it could master. are:

Important Information - Understood by staff.

•The business itself; - Staff are motivated and committed to its
•The organizers; success.
•The management and - What types of leadership styles are
technical people there?
•The financial structure How To Implement Your Plan?
•Its market potential
•Its target markets • Motivation
•Its projected sales, • Accountability
expenses, and profits • Skills and Will
•Its probable risk • Strategic Steps
Encourage staff to input into plans
What is business implementation?
- This is a set of steps that companies Methods to encourage staff input:
use to determine how to implement a - Asking for ideas
strategic plan within company activities - Having an ‘open door’ policy regarding
to achieve one or more business plan suggestions
objectives. - Sharing ideas
- Being prepared to test new ideas
Communicate Business Plan - Seeking information and ideas from non-
- Stakeholder considerations. traditional places
- Get a clear understanding of the
business plan. Put Your Plan into Action
- Ensure that all key concerns have been
considered. To successfully put plans into action we
- Understand the benefits of the business must make sure that our goals and strategies
plan. align with commonly held values, norms and
- Understand how the business plan will beliefs.
benefit them. - Set Priorities
- Understand how the business plan will - Review your progress
impact on them. - Adjust your plan as needed

Who's responsible for business Final Tips

implementation? PRIORITIZE
• Important vs Urgent
- This includes company executives, • Day to day vs Strategic
managers and employees. • Planned vs Unplanned
• Time Limits
Benefits of a strong business
implementation plan
- Uniform understanding across INCREASE PRODUCTIVITY
the business • Regular planning
- Enhanced productivity in the • To Do List vs Action Lists
Workplace Successful implementation of • Focus
strategic plans • Delegate
- Positive company change and

10
ENTREPRENEUR 2ND QTR COVERAGE: 1. Memorize all the
definition of direct
I. PART 1: TRUE OR FALSE (1-15) overhead, fixed cost,
direct labor, and direct
II. “1.10” materials
1. Customers go through when 2. Formula of unit cost
purchasing a product 1-5
memorize VI. 1.8 Financial Plan
2. Eternal stimuli 1. Projected income
3. External stimuli statement
4. Cultivating Customer 2. 3 terms, assets,
relationships (true or false) clue liabilities, owners’ equity
words lang daw and revenues
5. Ways to build customer loyalty 3. Operating expenses
true or false Includes the ff except:
6. Building and managing your 4. Salaries, red tag,
brand appreciation
7. Definition of the Brand 5. Projected sales and
8. It is a category made by a breakeven quantity
particular company gross margin, profit
9. Brand: unique design, elements, 6. Account names no need
etc. to memorize all the staff
10. One major component
VII. 1.11
III. PART 2: Multiple Choice – 1. Operations Manager -
Organizational Chart overseeing…
1. CEO illustration chart 2. Includes the ff except:
2. Line of command or 3. Warehousing
authority tawag sa lines maintenance,
sa Organizational chart advertising (mali ung
3. Reporting function of advertising)
the management
4. Staffing - Memorize all VIII. “Resource inputs (IPO - Input Process
definition Output) 5ms:”
5. Recruitment 1. Materials - semi-
6. Performance appraisal processed goods that
7. Selection further transformed in
8. Training and the promotion process
development 2. Machinery - all man-
9. Job analysis made physical capital
10. Job description used in the production
11. Job specification process.
3. Manpower - human
IV. 1.6 Marketing Plan resource Input
1. Description of the 4. Method - process of
business combining raw materials
2. Memorize all the steps 5. Money - resource used
in preparing a marketing to purchase all the
plan 5 steps yun resources needed
3. 7ps, don’t need to 6. Physical Transformation
memorize just 3ps - processing of raw
4. Promotion, price and materials coverts/alter
people into new product
Ex: canned goods bread,
V. Pricing and Computation furniture

11
 7. Locational - changes its 8. Intermediate - They are
location through various semi processed (raw)
means of transportation materials
or communication 9. Factor Inputs - siya ung
Ex: shipping lines, bus gumagawa ng
companies intermediate inputs/
8. Information - knowledge Transforming of
& specialized skills of productive inputs
providers are 10. Process - refers to the
transmitted to various parts of
costumers transformation
Ex: health services, legal 11. Average Cost - What is
services the total cost of
9. Exchange - when a production per unit of
commodity is being sold output?
to the buyer; engaged in
retail & wholesale trade. NO IDENTIFICATION NOR ENUMERATION.
10. Extractive - when a
natural resource is
taken out from its
habitat
Ex: mining, forestry

IX. 1.13 The Business Plan

1. Who is responsible for
the business
implementation?
Company executives,
managers and
employees

X. Part 3 of Exam
1. Sequencing - 5 stages
of the buying process
(recognizing of the etc.)

XI. Part 4 of Exam

1. Production
2. Operation Plan
3. Human Resource
management
4. Operations
Management
5. Brand - A category of
products that are all
made by a particular
company
6. Performance
effectiveness - output of
the firm was able to
achieve
7. Performance efficiency -
output of the firm was
realized

12