ENTREPRENEURSHIP Finals Reviewer
Francis Carlo M. Abelar
12STEM-14
Ms. Kristene Ayap
MARKET RESEARCH
 Process of gathering, analyzing, and
interpreting information about a market,
product, or service, to be offered for sale in
that market.
 The more the entrepreneur knows about his or
her relevant market, the more customers can
be properly segmented and reached, products
can be positioned, brands can be promoted,
prices can be set, and locations can be
pinpointed.
8Ps of Marketing
1. Positioning
 Enterprise Perspective – the enterprise
scans the market and decides to
position itself with products specifically
address the needs of a chosen target
market.
 Competitive Perspective – the
enterprise has to differentiate and
distinguish itself from competitors.
 Customers’ Perspective – is the way the
customers perceive the enterprise and
its products or services in their minds.
 Enterprises can establish their
positioning either by starting with their
own product creations or with their
customers’ outcome expectations.
 Latitude – lays out what is important to
the different customer segments from
their differing points of view.
 Longitude – represents the product
features and attributes
competitors in the marketplace.
 Branding – differentiates the product
from other products; avoids commodity
image for the product; fills the space in
the consumer’s mind that would
prevent other products from occupying
the same space.
2. Product
 Is the tangible good or the intangible
service that the enterprise offers to its
customers in order to satisfy their needs
and to produce their expected results
 Often identified with their brand names
to distinguish them from other products
in the market.
 Four General Types of Products:
 Breakthrough Product: offer
completely new performance
benefits. They may double the
performance at half the cost. They
may be much more convenient and
easy to use. (Ex: breakthrough
products are borne out of the
biotechnology field particularly in
terms of coming up with new
vaccines to protect people from
certain viruses)
 Differential Products: tries to claim
a new space in the mind of the
customer different from the spaces
occupied by existing products. (Ex:
Transitional lenses vs Regular
eyeglasses)
 Copycat Products: will not make
much impression on the consumer’s
mind. The marketer should make up
for this lack of mental space by
offering more physical space in the
shelves, lower prices, easier access,
promotional freebies, and the like.
of (Ex: Beer na Beer of Asia Brewery vs
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 San Miguel Pale Pilsen of San Miguel
Corp.)
 Niche Products: do not intend to
compete directly with the giants.
They are products with lower reach,
lower visibility, lower prices, and
lower top of mind.
3. Packaging
 Identifies the product, describes its
features and benefits, and complies
with government rules on specifying its
content, weight, chemical composition,
and potency. It provides easy brand
identification for the consumers.
 Differentiates the product from its
competitors and brand offerings.
 Lengthens the life span, physically
protects, and extends the usefulness of
the product.
 Increases the price of the product.
 The bundle of products or services that
are put together to attract and delight
customers.
4. Place
 “Location, Location, Location”
 Your aim is to provide the best access
for your customers 5. People
 One should consider the number of
customers residing or working in the
area, access routes to the area, buying
habits of customers, and location
features.
 Also, you should consider the cost of
buying or renting, renovating, and 6. Promotion
operating on that location, customer
volume and drop in rates, revenues and
profits.
 Image and Location Conditions: refers
to the physical look of a location,
sanitary conditions, crime, and safety
levels.
 Exact Fit to Target Customers
 Clustering of Competitor
Establishments
 Future Area Development
 Fiscal and Regulatory Requirements
 Relevant Location Drivers:
 Physical Proximity to Target
Market: locations are chosen
based on how it is to the target
market.
 Customer Traffic Flow: refers to
the people that regularly come
into contact with your business
establishment.
 Industry Clustering: a lot of
competitors clustered in one
location bring up a large market.
 Convergence of Multiple
Industries: where multiple
industries like offices, shopping
malls, and pubic markets attract
larger crowds.
 Population Concentrations
 Activity Hubs: consists of schools,
high-rise building, public parks,
transportation terminals, etc.
 Ultimate marketing strategy.
 They promote, distribute, price, and sell
the products in the most attractive
market places.
 Play a crucial role in the success of the
enterprise
 Explicit communication strategy
adopted by an enterprise to elicit the
patronage, loyalty, and support not only
from its customers but also from its
other significant stakeholders.
 Encompasses all the direct
communication efforts of the

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 enterprise, such as advertising, public
relations campaigns, tours, etc.
7. Price
 Depends on the business objectives set
by the enterprise.
 Not a simple matter of adding a mark-
up on the cost of a product or service
8. Prospect
 A potential customer that has been
qualified as fitting certain criteria.
 Fits your target market. Has the means
to buy.
 Are your target market or your
customers.
Product Development
 Successful products spring from the
convergence of (1) creative mind (2)
technical mind and (3) business mind.
 Creative Mind: conceptualizes and designs
a product that consumers find some use
for.
 Technical Mind: the technology originator.
Converts new knowledge into something
highly functional and operational. Also
known as technology adaptor, due to the
rising change of the use of technology.
 Business Mind: harness the potentials of
new products by creating the market space
for them. Organizes sufficient forces and
resources to develop, launch, and
commercialize the new product.
6 Ms of Operations
1. Money
2. Manpower
3. Management
4. Methods
5. Materials
6. Machinery
Critical Sub-Processes or Sub-Systems in the
Transformation Process
1. Operating Work Flow: follows the rationale
of the technology being adopted and used.
2. Layouting: the OWF must translate into an
appropriate-designed and executed physical
layout of the factory or service shop.
3. Production Programming and Schedule:
proper determination of what goods to
produces, in what size and packaging, in
what machinery and equipment, how many
units, and precisely when.
4. Quality Control: where the quality, delivery,
and price of customers are matched.
5. Operating Systems and Procedures: are the
enterprise standards for running the entire
operations.
6. Operations Management, Supervision, and
Control: orchestrate and control the entire
Enterprise Delivery Sytsem. Consists of Pre-
Operations (designing and developing EDS;
choosing operations site and technology;
acquiring of technology; constructing and
layouting operation facilities) Operations
Proper (Implements and runs the factory or
service shop) and Post- Operations.
(Manges the logistics of warehousing,
distributing, and delivering of finished
products)
7. Worker Motivation, Skilling, Deployment,
Compensation, and Control
8. Support Services
Human Resources Function
 Strategic HR: manages the big changes in
the direction of the enterprise.
 Operational HR: installs the administrative
systems that would allow for the efficient
management of the organization and
creation of conducive work environment
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Eight Rs of HR procurement and utilization of funds of the
enterprise.
1. Recruiting: many HR advisors and
 Applying general management principles to
consultants often advocate that
financial resources of the enterprise.
organizations “should hire for attitude,
develop for competence.” You do not only Importance of Financial Management
consider their skills but also their cognitive
and applicability skills, and attitude.  Estimation of Capital Requirements
2. Routing: Organization who desire to  Determination of Capital Composition
optimize the value of people over the long  Choice of Sources of Funds
haul should have a good routing strategy.  Investment of Funds
The more versatile and flexible the recruit  Disposal of Surplus
is, the more opportunity he/she has for  Management of Cash
assuming multiples roles in the  Financial Controls
organization.
Income Statement
3. Retaining: retaining people or retention is
being able to hold on to people, provide  Financial document that is used to calculate
that a company wants to keep them in the a business’ revenue, costs, and expenses
first place. over a specific period of time.
4. Resonating: is to be “in tune with” or to  Elements: Revenue and Expenses
reverberate with an organization that
resonates with people and their employees
who resonate with their management are
like to have goal congruence.
5. Reviewing: is to measure and evaluate their
performance with the organization goals in
mind.
6. Rewarding: concerned about
compensating, investing, and recognizing
employees for their work, loyalty, and
accomplishments. Sources of Funds
7. Retooling: both new recruits and old timers  Firms raise money mainly to meet the
need retooling in order to meet the following three types of need: to start a
performance expectation of the business as initial expenditure, to fund
organization. continuous business activities and money
8. Recycling: affords the people the chance to flowing, and to expand the business.
jobs or careers.

Financial Plan/Management

 Means planning, organizing, directing, and

controlling the financial activities such as

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 Gross Profit: is the difference between the net
Financial Statements sales and the cost of goods sold.

 Formal reports that provide financial

information
 Presents the consequences of business
events or transaction, split and classified
according to its financial nature.
 Accounting – language of finance

Gross Sales: total of all sales for any period of time

Net Sales: represents gross sales minus all sales

returns and allowances

Operating Expenses: costs of operating the

business, which include both variable and fixed
expenses.

Variable Expenses: change from one month to the

next (Ex: Advertising, Office Supplies, etc)

Fixed Expenses: costs that remain the same for a

period of time (Ex: rent, insurance, office salaries,
etc.)

Cost of Goods Sold (COGs): total amount spent to

produce or to purchase the goods that are sold.

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Net Income: amount left after the total expenses
are subtracted from gross profit.

Statement of Financial Positon/Balance Sheet:

presents the company’s financial position.

Assets – resources controlled by the entity from

which future economic benefits are expected to
flow
Current Assets –arranged in order of liquidity
Cash Flow Statement: a monthly plan that shows  When it is cash or cash equivalent
when you anticipate cash coming into the business  Company intends to hold the asset for
purpose of trading it
and when you expect to pay out cash. A cash flow
 When the company expects to realize asset
statement helps you to see if you will have enough
within 12 months
money when you need to pay your bills.  When the company expects to realize asset
or intends to sell or use it within entity’s
normal operating period.
Non Current Assets – expected to realize the asset
in more than 12 months

Balance sheet: is a summary of a business's assets,

liabilities, and owner's equity.

Assets: are anything of monetary value that you

own. They are classified as either current or fixed
assets.

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Liabilities

 present obligations of the firm from past

transactions or events
 payment is expected to result in outflow of
economic resources or assets

Current Liabilites - expected to pay the liability

within its normal operating period or within 12
months.
Non Current Liabilities – expected to pay the
liability in more than 12 months

Breakeven Point

 It represents the sales amount – in either

unit (quantity) or sales terms – that is
required to cover total costs, consisting of
both fixed and variable costs to the
company.
 Total profit at the break-even point is zero.

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