Entrepreneurship Marketing Philosophies

“Everything is marketing.”  Product concept or philosophy – A company is said

to be following product concept or philosophy if
Basic Concepts of Marketing product performance is given priority. It means no
product leaves the assembly line if it is not high
 Needs – refer to situation in which something is quality.
missing and has to be satisfied.
 Wants – are the proffered products of an individual  Exchange and Transaction – in transaction, terms
that will satisfy his needs. Individual product, and conditions, date of transaction, place of
preference is strongly influenced by one’s transaction, amount involve and other agreed upon
personality or culture. conditions are presents, while exchange involves
getting something in return.
 Demand – involves one’s need or want for products
backed up by his capacity to purchase a product.  Market – refers to people patronizing or already
using the company’s product or availing its various
Hierarchy of Needs by Maslow
services. It also includes those who would avail of
the company’s products in the near future. Thus,
market refers to both the actual and potential buyers.
 Product – anything that a buyer buys. It is anything
that a company offers to satisfy the market needs or
wants.
 Production Philosophy – Those companies that
value the importance of the availability of products
at all times with reasonable price follow the
production philosophy.
 Marketing Concept – Firm determine first the need
and wants of their potential market, then device
ways product or services to satisfy these needs and
What is Marketing? wants more effectively and efficiently than their
competitors.
The field marketing is broad and dynamic. It involves
not only product creation, but also pricing the offering  Services – Kotler (2001) defined service as “any
wisely in order to attract the right market and promoting activity or benefit that one party can offer to another
and distributing the products to identified outlets or that is essentially intangible and does not result in
places. Marketing is concerned with maintaining high the ownership of anything”.
customer satisfaction and continuously building and  Marketing Mix – Known as the Four Ps in
keeping good relationship with the market. marketing which means product, price, place, and
 According to Abraham Maslow’s hierarchy of promotions. Each has to be well coordinated by the
needs, there are several levels of human needs. firm so as to have good marketing activities.
Starting from the bottom which is known as the  Societal marketing concept – firms lock into the
physiological needs, include the need for food, welfare of society in general and deliver their
clothing and shelter. This level is followed by safety offering in a way that satisfies their market more
and security needs, which consist of the things that effectively and efficiently than their competitor.
make one feels secured and safe. Like owning a
house, security of tenure, insurance, etc. Social  Selling philosophy – firms hire marketers or sales
needs refer to one’s sense of belongingness to a people to do aggressive marketing for the firms
group or association, like being member of a choir product or services.
or an officer of a faculty club or any distinguished
association or organization.
 Next level is the esteem needs or the individual’s
needs or strong desire to be recognized of his efforts
and accomplishments. The last level in the
hierarchy of needs is the self-actualization needs. It
involves the continuous improvement of one’s
talent, skills and knowledge by further studying to
be shared or given back the society. Planning the Business Enterprises
Business enterprise involves great planning and decision
making, particularly when it is still in the
conceptualization stage. An individual planning to put
up business need to consider the following: what
business to enter, who will be the target market, how to
beat competitors, where to get the capital needed for the 3. Planning must be flexible. Resources needs and
investment to purchase or not to purchase an equipment, economic conditions change. Planning should be
and how to better serve its market. adjusted to such changes to be effective and
relevant.
What is Strategic Planning?
4. Planning must start with simple projects.
 Marketing Guru, Philip Kotler, defined strategic
planning as a process of developing and maintaining
a strategic fit between the organization’s goals and
capabilities and its changing marketing
opportunities.
 Strategic planning starts from the moment the top
management at the corporate level forms the
company’s mission statement.

A mission statement stipulates what the firm values Components of Business Planning
and its reason for existence. This is cascaded down to
all the employees and will serve as their guide in the 1. SWOT. The chances of a product or service can be
performance of their task. evaluated through the swot analysis. Every Product
or service has its own strength, weakness,
opportunity, and threat. Planning should include the
improvement of the product/service in order to
survive competition.
2. Objectives. These should be specific and realistic.
Such objectives can be daily, weekly, monthly, and
yearly.
3. Strategies. These are ways of accomplishing the
Importance of the Business Planning objectives, such ways are stated in the financial,
production, marketing and organizational plans of
Through planning one can: the enterprise.

 apply for loans; 4. Time Frame. In business, time is gold. For this
reason an entrepreneur must be efficient in time
 determine the needed capital; management.
 evaluate actual performance against set targets; Marketing Plan
 lessen impact of business failure; Marketing Planning involves deciding on marketing
 lessen risk of doing business; strategies that will help a company achieve its overall
strategic objectives.
 minimize mistakes;
 minimize or eliminate losing capital because
everything is well thought of;
 result in better preparedness for sudden
development;
 lead to better coordination among different
departments in the company; and
Benefits of Marketing
 program activities in advance
 It creates employment.
Principles of Planning  It helps develop more and better products.
1. P l a n n i n g
It provides better profit. m u s
 It improves the quality of life.
 It produces more entrepreneurs.
 It contributes to economic development.
Strategic Planning versus Marketing Plan

. It must be based on the available resources; human.  Strategic Planning – involves deciding on
Financial and physical resources. marketing strategies that will help a company
achieve its overall strategic objectives
2. Planning must be based on felt needs. The
objectives of an entrepreneur should fit the needs of  Marketing Plan – includes the executive summary
the people in a community. It can be known through current marketing situation, environmental analysis,
observation, personal interviews, and questioners. marketing objectives, marketing strategies, action
programs, budget and controls.
 Parts of a Marketing Plan 2. Development of the company’s growth strategy.
There is a need for companies to appraise the SBUs
1. Executive Summary – present the highlights of the
to determine which among the SBUs will be given
plan. It is the overview of the proposed plan.
support and up to what extent.
2. Current Marketing Situation – provides data on the
present product. Its market and how products are What is SBU?
distributed and promoted. The strategic business unit (SBU) is a single business
3. Environmental Analysis – discusses the various or collection of businesses that has a distinct mission, a
external factors that affect the marketability of the responsible manager, and its own competitors and that is
product. This defines the product’s strength and relatively independent of other business units. (Hutt and
weaknesses as well as the various threats and Speh 2013).
opportunities facing the products.
SBUs can pursue any of the following strategies:
4. Objectives – consist of marketing goals in the area of
sales, target positioning market share and profit.  Build its share. More investment is needed by
companies to achieve this.
5. Marketing Strategies – consist of the company’s
game plan, indicating how objectives will be  Hold its share. Companies may invest just enough
achieved. to maintain or hold their share at the current level.
6. Action Program – indicates the steps that the  Harvest. Milking its short-term cash flow
company would undertake to ensure that marketing regardless of the long-term effect.
strategies would be achieved. It includes identifying  Divest. Company may sell the SBU or phase out the
the persons involved the timeframe and the budget. product and use the resources elsewhere.
7. Budget – is an important component that puts into  Stars - are high-growth/high-share product that
details the cost of implementing the marketing plan. needs heavy investment to achieve growth.
8. Controls – indicate how progress will be monitored  Cash Cows – are low-growth/high-share business
and reviewed by the management. or products. It needs less investment to maintain
market share.
Process of Strategic Planning
 Question Marks – SBUs with low market share in
 Drafting the Company’s Mission high-growth market. Question marks need more cash
The company’s statement of purpose is called its to hold its market share.
mission. It describes the company’s reason of being or  Dogs – have low share and low-growth status. The
what the company wants to achieve. cash generated may be just be enough to themselves
The clear mission statement of a firm serves as a guide but does not promise to have big source of profit.
to all its employees. List of the most common Small Business in the
Setting of Company’s Objectives Philippines

These consist of detailed supporting statements or 1. Sari-sari Store. Is a Convenience store found in the
objectives intended for the different management levels Philippines. The word sari-sari is tagalog meaning
to achieve. “variety”.

Examples of a company’s objectives are: 2. Rice Retailing. Is a profitable business because rice
is the staple food in our country.
a. To build profitable customers relationship
3. Food Cart Business. This business is also very
b. To increase company’s sales and
popular in the Philippines. The number of food cart
c. To increase company’s product awareness. businesses is not big as the number of sari-sari
Designing the Company’s Business Portfolio stores, but food carts are present in almost every
populous location.
Products and businesses are equivalent to the portfolio.
Assisted by the company’s mission statement and set 4. Printing Business. This business is also lucrative in
objectives, the company must evaluate its business the Philippines because the demand is very high.
portfolio. Usually situated near schools and offices, printing
businesses cater to the needs of students for their
projects and also to offices for their advertising and
There are business requirements.
two ways in
5. Buy and Sell Business. This business is one of the
which a
merging businesses in the Philippines, and it is not
firm may asses its business portfolio.
just done traditionally in brick-and-mortar stores but
1. Analysis of the current portfolio of the company. In also over the internet.
here, the company assesses its products and decides
6. Street
which among the businesses must be given more
Food
investment, less investment, or no additional
investment at all.
 Business. Just like the food cart business, the kind of 19. Bar, Cafe and Restaurant. The number of foodies
business is widespread in the Philippines. Street has increased because the Filipino palate became
food businesses are literally located in streets, globalized. Filipino consumers demand for variety
selling almost the same products being sold by the and quality taste has evolved as well; thus, these
food cart business. businesses are continuously thriving.
7. Flea Market Business or Tiangge. In this type of 20. Water Station and LPG Station. These businesses
business, entrepreneurs set up a small space and sell can never go wrong as they continuously serve
any type of goods in a “palengke” setup that is households, supplying them with their purified water
normally in an open space. and gas needs.
8. Online Selling Business. This business deals with
adding the internet as a marketing and transaction
channel for selling.
9. Cellphone Loading Business. More than 95% of
Filipinos are prepared mobile phone users, according
to an article published by the Philippine Daily
Inquirer (2012). Moreover, 80% of Filipino Discussion
households have access to mobile phones.
Basic Concepts in Marketing
10. Laundry and Dry Cleaning Business. This types of
 Needs – priority or self-state deprivation.
business is often located at central business districts
 Wants
and areas with several condominiums and
- something that you like or in favour
townhouses.
- self-rewards
11. Hair Styling and Makeup Business. One of the  Demand
successful business in the PHILIPPINES is the - Strong needs of people on something
hairstyling business, which includes parlors and - Group of people
barber shops.
Marketing
12. Spa, Gym and Nail Care Business. Related to the
- broad and dynamic
hair styling and makeup business is the spa, gym,
 Broad – in terms of production, financial
and nail care business. One of the ways Filipinos
product and services.
cope with stress is by going to a spa. This business
 Dynamic - in terms of the value of your
offers a range of massage treatments that can relax
customers; changing.
the stressed areas of the body, as well as other skin
- Managing profitable relationships
treatments such as facials and body scrubs.
*Financial Asset - money given by customers
13. Video and Photography Business. This Business
requires talent in capturing precious moments of 3 Main Objectives of Marketing
celebrators in weddings, birthdays, anniversaries,
 Focus on advertisement of a product
graduation and other important events.
 Focus on creation of new products/services
14. Tutorial Business. This business caters to students  Focus on putting the right pricing strategy in the
who are not able to catch up with their lessons, or market
those who just want to be a head in class.
*Pricing strategy – offers affordable products
15. Baking Business. A lot of bakeries are present in
Goals of Marketing
almost all neighbourhoods in the Philippines
because bread is the second staple food of Filipinos.  Customers’ satisfaction – reach the expectation of
customers
16. Web Site Development and Design Blogging. The
 Customer delight – exceed the expectation of
popularity of the internet brought so many
customers
opportunities to Internet-savvy budding
entrepreneurs. In this business, the web site
developer conceptualizes and implements a web site
for another business whose objective is to inform,
persuade, and remind its customer. Marketing Philosophies

17. Direct Selling Business. This business is also very  Product concept of philosophy – excellent quality
common in the Philippines. It is a face to face selling degree of product
of products by a sales agent.  Exchange and transaction
- refers to a business deal
18. Car wash and Car Care Business. You often see - distinguish relationship between target buyers
this business in large cities because of the and sellers
proliferation of cars, In fact, the demand for car care  Market
increases every year. - Product is unique in terms of price and uses;
- In terms of competition.
 -Consider market economy system. Strategic Business Unit (SBU) – autonomous large
 Monopoly division of the company that operates independent
 Oligopoly Market Situations
enterprises
 Pure competition
- Division of products
 Product
 Production Philosophy – generating goods and SBU Strategies
services  Market share – total/overall sales of a company
 Marketing Concept – establish goals and objectives
 Cash Cows
and mission and vision.
Marketing Proposal Plan (added in marketing plan)
Parts of Marketing Plan
1. Executive Summary – description of products
(tangible)
2. Vision
3. Mission
4. Objectives
5. SWOT ANALYSIS
6. COMPETITORS
 Direct Competitors
 Indirect Competitors
7. 7 P’s of Marketing
8. Conclusion – importance of products and
services in the community

 Services – doing work for someone

 Marketing Mix – 7 P’s of marketing
Strategic Planning – is an organization’s process of
defining its strategy
The 7 P’s of Marketing
1. Product – what product and services is needed in
the community (logo and tagline)
2. Place
- what location is best suited for the business
- referring to target business/customers
3. Price – affordable price Budget will be project
Cost of Materials
Capital
Income
4. Promotion – effective techniques and strategies in
advertisement of product.
5. People
- What type of people need to be hired?
- Staff and employee
- Duties and responsibilities
6. Packaging – what is the best packaging for the
product that is attractive to the customers
7. Processing
- what is the most compelling features of the
product
- Specification of your product and services
Strategic Planning – it is an organization process
defining its (own) strategy.
 Brainstorming – it is under strategic planning.
 Mission Statement - what is the business and who
are the beneficiaries of your business?
Business Portfolio - it is a collection of products and
services representing the company’s information.