ENTREPRENEURSHIP

4TH QUARTER | 2ND SEMESTER

This course deals with the concepts, underlying principles, processes and implementation of a business plan.
population, the traffic, the people’s common paths, their buying
LESSON behavior, and their preference for the location (Wi-Fi access,
spacious area for parking).
7 P’s in Marketing ○​ In a cyber location web analytics data (e.g. number of
visitors, duration of their stay on the web site, or the
●​ The Marketing Mix: The 7Ps of Marketing frequently visited contents).
○​ The marketing mix is a widely accepted strategic
marketing tool that combines the original 4Ps
Good placement means convenience. Accessible dapat sa target
(product, place, price, promotion) with the additional
market. mahirap kumain ng durian kung pupunta pa ng davao.
3Ps – people, packaging, and process – in
formulating marketing tactics for a product or service.
○​ These 7Ps are employed until the entrepreneur finds ●​ Price - Price is the peso value that the entrepreneur assigns to
the right combination that will most effectively serve a certain product or service after considering its costs,
the customer’s needs and wants and the same time competition, objectives, positioning, and target market.
achieve the profitability objective. ○​ It is the only P in the 7Ps that generates revenue for
●​ Products - A product is any physical good, service, or idea the business.
that is created by an entrepreneur or an innovator in serving the ○​ Variables that influence the setting of price:
needs of the customers and addressing their existing problem. ■​ Availability of the competing
○​ Three-level concept of products or services product/service
summarizes the reason that a customer decides to ■​ Cost of making the product/service
buy a productor avall of a service. ■​ Type of product
■​ Level 1: Core Benefits of the Product or ■​ Presence of substitute products
Service ■​ Stages of the product in the market
●​ The core-benefits of a product or ■​ Demographic profile of the target
service are the major factors why consumers.
a customer buys a product or ○​ 2 Classification of Costs
avails of a service. ■​ Variable Costs or Controllable Costs -
●​ For example, a customer buys these costs are directly proportional to the
coffee because he or she wants number of products manufactured or to the
to feel energetic and alert the number of services performed.
whole day. ●​ Example: one of the variable
■​ Level 2: Physical characteristics of the costs involved in a car wash
product or service. business is the cost of cleaning
●​ Once the core benefit has been materials. The business will incur
satisfied and options are higher costs only when more
available to the customers, the customers avail of the service, or
tendency is to look for the it will incur lower cost when there
second layer of selection which are few customers.
has a better packaging for ○​ Advertising
products or a better physical ○​ Bonuses
evidence or customer experience ○​ Direct and raw
for services. materials
●​ In the previous example, the ○​ Office supplies
customer can choose a coffee ○​ Company Seminars
with a more appealing packaging and trainings
or a more aromatic smell. ○​ Donations to charitable
■​ Level 3: Augmented benefits of a institutions
product or service ■​ Fixed Costs or Uncontrollable Costs -
●​ Augmented benefits are only These are costs not directly proportional to
additional benefits a customer the manufacturing of a product or to the
will still get, the core benefits of a performance of the service. These are
product or service even without usually the cost of equipment, employee
the augmented benefits. remuneration, rental cost, and utilities.
●​ In the previous example, the ●​ These are considered fixed costs
customer can choose a coffee because the business will still
product that comes with a loyalty incur these costs whether or not
card, so that when he/she they provide more or less.
accumulates, say, 10 coffee ●​ Therefore, if the entrepreneur
drinks, he/she will able to get a produces more products and
free coffee drink. performs more services, his or
her fixed costs per unit will be
lower because the fixed cost will
be allocated to the number of
units produced or number of
service performed.
○​ Rent and Lease Costs
○​ Salaries Utility Bills
○​ Insurance Loan
○​ Repayments Business
Licenses
○​ Most Common Pricing Strategies
■​ Bundling - This refers to 2 or more
products or services in one reduced
price(e.g., 3-in-1 coffee for P8.00, a
●​ Place - The place refers to a location or the medium of
manicure and pedicure for P150). Most
transaction. In a physical location, one must research the area’s
 common strategies ■​ Product or service image.
■​ Penetration Pricing - This refers to setting ■​ Business image.
low price to increase market share, but the ■​ Business value and philosophy.
entrepreneur will eventually increase the ○​ The entrepreneur can choose one or combination of
price once the desired market share is the following promotional tools:
achieved (e.g., a mobile app-based ■​ Advertising - Tthis is a type of
transportation service offering reduced communication that influences the behavior
booking fee of P15 as its introductory of a customer to choose the product or
price). service of the entrepreneur over the
■​ Skimming - This is the opposite of competitors.
penetration pricing where prices are initially ●​ Informing, educating, and
high and then they are lowered to offer the familiarizing the public with the
product or service to a wider market (e.g. a product and service offerings;
real estate company offering top-tier ●​ Building a trustworthy image;
projects is now offering low-cost housing of ●​ Increasing sales
same quality to serve the middle market
segment).
■​ Competitive Pricing - This refers to Medium of Advertising
benchmarking prices with the competitors
(e.g., a milk tea prices are competitively Television Regular channels, cable TV
priced; shopee/lazada).
■​ Product Line Pricing - This refers to Radio AM and FM radio
pricing different products or services within
a parallel product array using varying price Internet Emails, web sites, blogs, social media, search
points (e.g. LED TV is more expensive engines, podcasts
than the LCD TV even if under the same
brand).
Mobile Phones Text messages, mobile applications, mobile
■​ Psychological Pricing - This considers
internet
the psychology and positioning of price in
the market (e.g. price of haircut service is
at P199 because consumers tend to think Print Newspapers, magazines, flyers, directories,
that old prices are considerably lower than signage's, posters
what they are in this example, they tend to
round off the price to P100 instead P200). Out-of-Home Billboards, buses, bus stops, trains, train
■​ Premium Pricing - This refers to setting a stations, taxis, street advertisements
very high price to reflect elitism and
superiority (e.g. prices of signature clothes,
bags, perfumes). ■​ Selling - This is the act of trading a product
■​ Optional Pricing - This refers to adding an or service for a price or a fee.
extra product or service on top of the ■​ Sales Promotion - These are short-term
original to generate more revenue (e.g. promotional gimmicks wherein practical
meals on top of the air fare). incentives and appealing activities are
■​ Cost-based Pricing – the basis of markup incorporated to entice the customers to buy
is the cost of sales. For example, the the product or avail of the service.
entrepreneur will compute the cost of ●​ Also called as the
coconut juice by adding all cost of the ‘’below-the-line’ ’promotions
coconut juice (P10) and the plastic ●​ Common examples of Sales
container (P4). He/She can set the price at Promotions in the Philippines:
P20 to earn P6 per coconut juice. ○​ Sales discounts or
■​ Cost Plus Pricing - the markup is based discount coupons
on a certain percentage of cost (e.g. the ○​ Raffles Contests and
entrepreneur wants to set a 50% markup games
on the coconut juice which is ○​ Promo items
P14×50%=P7; the new price is ○​ Product or service
P14+P7=P21). bundles
○​ General Pricing Guidelines ○​ Trade fairs or exhibits
■​ Do not price the product or service below (e.g. wedding expo)
its cost. ○​ Sample distributions or
■​ Monitor competitors prices, and ensure that free taste/free trials
your prices are at par with them unless the ○​ Premiums (e.g. free
product or service is really way superior to toys for fast food
the competitors. meals)
■​ Align prices with the other 6Ps (product, ○​ Point-of-purchase
place, promotion, people, packaging, and promotions (e.g.
processing). display stands in
■​ Implement price strategies that are relevant grocery stores
to your market segment. ○​ Advertising specialties
●​ Ex. tingi (sachet) pricing is more (e.g. pens, notebooks,
appropriate in the grassroots umbrellas, bags,
locality or barangay. calendars)
■​ Align prices with your business objectives. ○​ Rewards (e.g. reward
cards)
■​ Public Relations/Publicity - These are
Price is not an indicator of “mahal at mura”, but the willingness and image-building initiatives of the
ability of the consumers to spend for a product. entrepreneur to make the name of the
business reputable to stakeholders, such
as the target customers, government
●​ Promotion - Promotion involves presenting the products or agencies, business partners, media, and
services to the public and how these can address the public’s the public.
needs, wants, problems, or desires. The major goal of ●​ Common examples of PR
promotion is to gain attention. Strategies are as follows:
○​ Key marketing messages for promotion can be the ○​ Press conference
following: ○​ Launching events
■​ Value Proposition or unique selling ○​ Strong media relations
proposition of the product of service.
 through press kits customers are.
○​ Social responsibility ●​ Competitive Advantage – Why
events (e.g. charitable your business is unique.
or community events) ●​ Financial Highlights – Revenue
○​ Lobbying (e.g. good projections, profitability, and
relationships with funding needs.
government officials)
○​ Web public relations
(e.g. blogs, social Preparation of Executive Summary
media, e-mails, ●​ Keep it concise – Limit it to 1-2 pages.
word-of-mouth) ●​ Summarize key points – Mention your business concept,
●​ unique selling proposition, and financial highlights.
●​ Make it engaging – Use clear, persuasive language to
Promotion and Communication ●​ capture interest.
●​ Write it last – After completing the full plan, summarize the
Promotion is there to influence consumer demand. Promotion ●​ most important details here.
therefore should be able to communicate the features, benefits, and
advantages of a product to the consumer. ○​ Environmental Analysis and Business
Description
●​ People - Most entrepreneurs only hire people when the ■​ Environmental Analysis - It examines
business starts to expand. When the need arises to hire people, external factors that may affect the
he or she must identify the specific, necessary job roles of business, such as economic trends,
employees. industry competition, and legal factors.
○​ The entrepreneur must list the criteria of the following ■​ Business Description - It provides
job offers, as well as the requirements such as detailed information about the company,
academic background, job experience, skills or including its name, mission, vision,
expertise, attitude, and other documents (e.g. police objectives, and the problem it aims to
and NBI clearance). solve.
●​ Packaging/Physical Environment - Packaging is how the
product or service is presented to customers. It is the overall Conducting Environmental Analysis
identification (look and feel) of the product of service. Its ●​ Industry Overview – Describe your industry’s current status
ultimate goal is to entice the customers. and future growth potential.
○​ Its ultimate goal is to entice the customers to ●​ Market Trends – Identify consumer preferences and
purchase the product or service. technological advancements.
○​ Servicescape - It is used to refer to the overall ●​ Competitive Landscape – Analyze direct and indirect
ambiance of the place where the service is competitors.
performed. ●​ Regulatory Environment – Identify laws and policies that
●​ Process - Marketers began to realize the importance of the may impact the business.
internal and external operations of the business to serve
customers better. It is defined as the step by step procedure or
activity workflow that the entrepreneur or employees follow ○​ Business Description (Company Overview)
effectively and efficiently serve customers. ■​ Company Name & Legal Structure –
○​ Internal Process - Back-office operations Sole proprietorship, partnership,
(preprocessing, processing,post processing) corporation, etc.
○​ External Process - actual serving where customers ■​ Nature of Business – What the company
are part of the process. does.
■​ Mission & Vision – Why the business
exists and its long- term goals.
Promotion is there to influence consumer demand. Promotion ■​ Objectives – Short- and long-term
therefore should be able to communicate the features, benefits, and business goals.
advantages of a product to the consumer.

Preparing Business Description

●​ Use SWOT Analysis – Identify strengths, weaknesses,
opportunities, and threats.
LESSON ●​ Research industry trends – Look at market size, demand,
and competition.
Business Plan ●​ Define your business clearly – Describe the nature,
purpose, and values of your company.
●​ Business Plan - A business plan is a formal document that
outlines the goals, strategies, and financial projections of a
business. It serves as a roadmap for entrepreneurs and is ●​ Organizational Plan - The Organizational Plan outlines the
essential for securing funding from investors or lenders. A structure of your business, including ownership, key personnel,
well-prepared business plan includes the following key and their responsibilities.
sections: ○​ Ownership Structure – Who owns the business and
○​ Parts of Business Plan their roles.
■​ Executive Summary - The Executive ○​ Organizational Chart – A diagram showing key
Summary is a brief yet compelling overview personnel and their responsibilities.
of the business plan. It highlights key ○​ Roles & Responsibilities – Job descriptions for key
points, including the business idea, target management positions.
market, competitive advantage, and ○​ Legal Considerations – Business registration,
financial projections. permits, and compliance requirements.
●​ Business Name and Location
– Where and what your business
Preparing Organizational Plan
is.
●​ Use an organizational chart – Visually show roles and
●​ Business Concept – What your
hierarchy.
business does and what problem
●​ Define roles and responsibilities – Be clear about job
it solves.
descriptions.
●​ Mission and Vision Statements
●​ Plan for future growth – Consider how the team will
– Your business’s purpose and
expand over time.
long-term goal.
●​ Products or Services – What
you’re offering to customers. ●​ Production and Operation Plan
●​ Target Market – Who your ○​ Production Plan (for manufacturing businesses)
 - It describes how products are made, the materials owner’s equity.
needed, and quality control measures. ■​ Cash Flow Statement – Expected cash
■​ Describes how the product is made, inflows and outflows.
materials used, and quality control ■​ Break-even Analysis – When the
measures. business will start making a profit.
●​ Manufacturing Process – ■​ Funding Requirements – How much
Step-by-step process of capital is needed and where it will come
production. from (loans, investors, savings).
●​ Raw Materials & Suppliers –
Where and how materials are
sourced. Preparing Financial Plan
●​ Production Capacity – How ●​ Be realistic – Base projections on market research and
much you can produce within a industry data.
certain timeframe. ●​ Estimate startup costs – Include expenses like equipment,
●​ Quality Control – Measures to rent, and salaries.
ensure product standards are ●​ Plan for funding – Identify sources of capital (loans,
met. investors, savings).
○​ Operation Plan - It covers daily business activities, ●​ Prepare a break-even analysis – Show when the business
location, suppliers, equipment, and logistics. will start making a profit.
■​ Covers the day-to-day business activities.
●​ Location & Facilities – Physical
space, office, or warehouse
details. LESSON
●​ Equipment & Technology –
Tools and software used in
Branding
operations.
●​ Inventory Management – Stock
levels and supply chain process. ●​ Brand - It refers to the name, design, color, symbol, quality,
●​ Business Hours & Workflow – features, or a combination of these elements.
Operational schedule and ■​ Colors
service delivery process. ■​ Logo
■​ Sound/Image
■​ Tagline
Preparing Production and Operation Plan ○​ “A brand is a name, term, design, symbol, or any
●​ Detail the process – Explain step-by-step how the business other feature that identifies one seller’s good or
will operate. service as distinct from those of other sellers”
●​ List suppliers and equipment – Identify sources for raw (American Marketing Association).
materials or necessary tools. ○​ You can consider a brand as the idea or image
●​ Consider efficiency – Look for ways to optimize production people have in mind when thinking about specific
and minimize costs. products, services, and activities of a company, both
in a practical (e.g. “the shoe is light-weight”) and
emotional way (e.g. “the shoe makes me feel
○​ Marketing Plan - The Marketing Plan details how the powerful”).
business will attract and retain customers through ●​ Branding - It is the process of giving a meaning to specific
strategies such as pricing, promotion, distribution, organization, company, products or services by creating and
and sales. shaping a brand in consumers’ minds.
■​ Target Market Analysis – Who your ideal ○​ It is a strategy designed by organizations to help
customers are (age, gender, income, people to quickly identify and experience their brand,
preferences). and give them a reason to choose their products over
■​ Competitive Analysis – What sets you the competition’s.
apart from competitors. ○​ “Branding is endowing products and services with the
■​ Marketing Strategies (4Ps of Marketing): power of a brand” (Kotler & Keller, 2015)
●​ Product – What makes your ○​ A strategy used to differentiate your product from the
product/service unique? rest
●​ Price – How much will you ○​ Product Identity - It is how your customers see your
charge? What pricing strategy product.
will you use? ●​ Branding Strategy
●​ Place – Where will you sell ○​ Review carefully the attributes, benefits, and values
(online, in-store, both)? of the product.
●​ Promotion – Advertising, social ○​ Evaluate the consumers in the target market.
media, influencer marketing, etc ○​ Analyze the proposed marketing strategies.
■​ Sales Strategies – How you’ll generate ○​ Limit the brand name to one or two words.
revenue and close deals. ○​ Check if the chosen brand name already exists.
●​ Types of Branding Strategy
Preparing Production and Operation Plan ○​ Umbrella Branding - It is a marketing practice that
●​ Identify your target market – Define customer means launching a new product or even a product
demographics and preferences. line under a famous brand name.
●​ Use the 4Ps (Product, Price, Place, Promotion) – Outline ■​ The goal of this strategy is to increase a
your strategy. company's market share. The term is also
●​ Include Digital Marketing Strategies – Consider social known as family branding.
media, SEO, and online ads.
●​ Set Measurable Goals – Use key performance indicators Advantages Disadvantages
(KPIs) to track success.
●​ The success of a ●​ Clients expect
○​ Financial Plan - The Financial Plan provides popular product gives high-quality products.
projections of revenue, expenses, and profitability. It credibility to the new ●​ One mistake can ruin
typically includes an income statement, balance product. your business.
sheet, and cash flow statement. ●​ It decreases
■​ Startup Costs – Initial expenses advertising costs.
(equipment, rent, marketing, etc.). ●​ You already have loyal
■​ Projected Income Statement – Estimated customers.
revenue, costs, and profits for 3-5 years. ●​ You can significantly
■​ Balance Sheet – Assets, liabilities, and increase sales.
 ○​ House Brand Approach - House of Brands is home
to numerous brands, each independent of one
another, and each with its own audience, marketing,
look and feel.
■​ Benefits of House Brand
●​ Reach – greater target
audiences and broaden a
brand’s demographic reach
●​ Safety Net – companies can
take more risks with new
offerings, knowing they have
strong, tested brands to fall back
on if necessary
●​ Shield – in the case of bad
press, the individual brand can
take the heat while keeping the
company’s reputation secure
●​ Needs and Wants
○​ Needs - These are the things you can't get by
without, such as a place to live and food to eat.
○​ Wants - These are things that are nice to have but
not absolutely necessary, such as entertainment or
gym memberships.

Some things you buy might seem like needs but are really wants
because you're choosing a version that's more than you actually need.