RECOGNIZE A POTENTIAL MARKET 1.

2 The Societal environment includes the

various forces like
Entrepreneurial Ideas a. Political forces includes all the laws,
The creation of an entrepreneurial idea leads rules, and regulations that govern
to the identification of entrepreneurial business practices as well as the
opportunities, which in turn results in the permits, approvals, and licenses
opening of an entrepreneurial venture. necessary to operate the business.
The entrepreneurial process of creating a new b. Economic forces - such as income
venture is presented in the diagram below. level and employment rate. c.
(Nick L. Aduana, Etrepreneurship in Philippine Sociocultural forces - customs, lifestyles
Setting for Senior High School, 2017, C&E and values that
publishing page 46, Aduana, 2017). characterize a society.
Technological environment - new
Entrepreneurial mind frame. This allows the inventions and technology innovations.
entrepreneur to see things in a very positive
and optimistic way in the midst of difficult 1.3 The Industry environment of the
situation. Being a risk-taker, an entrepreneur business includes:
can find solutions when problems arise. a. Competitors
Entrepreneurial heart flame. Entrepreneurs b. Customers
are driven by passion; they are attracted to c. Creditors
discover satisfaction in the act and process of d. Employees e. Government
discovery. Passion is the great desire of an f. Suppliers
entrepreneur to achieve his/her goals.
Entrepreneurial gut game. This refers to the For example, one factor in the physical
ability of the entrepreneur of being intuitive. environment that can easily change
This also known as intuition. The gut game is the climate. The temperature is very high
also means confidence in one's self and the during summer but very low during the rainy
firm belief that everything you aspire can be season. An individual with entrepreneurial
reached. drive can be extremely imaginative and
inventive in identifying opportunities. He/she
Sources of Opportunities can venture on a business that responds to the
There are many ways to discover needs of the people during summer and rainy
opportunities. Looking at the big picture, some season.
have noticed the emerging trends and patterns
for business opportunities. While others are 2. Technological discovery and
trying to find out their target market. The advancement
following are some sources of opportunities: A person with entrepreneurial interest sees
1. Changes in the environment possibility of business opportunities in any new
Entrepreneurial ideas arise when changes discovery or because of the use of latest
happen in the external environment. A person technology.
with an entrepreneurial drive views these For example, an individual with knowledge in
changes positively. External environment repair and installation of a machine engine
refers to the physical environment, societal discovers additional engine parts that
environment, and industry environment where considerably reduce fuel consumption.
the business operates. PR

1.1 The Physical environment includes 3. Government's thrust, programs, and

a. Climate the weather conditions. policies
b. Natural resources - such as minerals, The priorities, projects, programs, and policies
forests, water, and fertile land that occur of the government are also good sources of
in nature and can be used for economic ideas.
gain. For example, the use of firecrackers to
c. Wildlife - includes all mammals, birds, celebrate New Year's Eve is strictly prohibited.
reptiles, fish, etc., that live in the wild. People without entrepreneurial interest will
view the ordinance as a plain restriction.
However, for an entrepreneur, it is a business c. The cost of switching the supplier
opportunity to come up with a new product that cost is minimal.
will serve as a substitute for firecrackers. d. The product represents a high
percentage of the buyer's cost.
4. People's interest e. The buyer purchases large portions
The interest, hobbies, and preferences of of the seller's product or services.
people are rich sources of entrepreneurial
ideas, like the increasing number of Internet 2. Potential New Entrants
Cafés at present could lead to the strong A new entrant is defined as companies or
attachment of young people to computers. businesses that have the ability to penetrate or
enter into a particular industry. For example, in
5. Past experiences the level of capital requirements, if the
The expertise and skills developed by a person business requires huge capital, new entrants
who has worked in a particular field may lead should decline to join the business. This gives
to the opening of a related business enterprise. a threat to the business. This can be noticed if
For example, an accountant who has learned there is the presence of the following factors:
the appropriate accounting and management a. Substantial capital requirement
skills and techniques in a prominent b. Strict government policy
accounting firm can start his/her business c. Difficulty in accessing distribution
venture by opening his/her own accounting channels
firm. d. Economies of scale
e. High cost of product differentiation
f. High switching cost
Forces of Competition Model
It is also known as the "five forces of 3. Rivalry among Existing Firms
competition". An industry environment is a Rivalry is a state or situation wherein business
competitive environment. Regardless of what organizations are competing with each other in
product or services you have, competition is a particular market. For example, it depends
always present. on the marketing strategy of your competitor,
like giving freebies and special offers. The
Competition - it is the act or process of trying intensity of rivalry among existing firms is
to get or win something. characterized to the following factors:
stores. a. Diversity of rivals
For example, the prices are lower when there b. Number of competing firms
is a competition among the c. Characteristics of the products or
These are the five forces competing within the services
industry: d. Increased capacity
e. Amount of fixed costs
•Buyers f. Rate of industry growth
•Potential new entrants
•Rivalry among existing firms 4. Substitute Products
•Substitute products Substitute is one that serves the same purpose
•Supplier another product in the
market. For example, the consumers decide to
1. Buyers use margarine as a substitute for butter. In
The buyers are the ones that pay cash in case the price of butter increases, preferably
exchange for your goods and services. One the consumer will gradually switch to
example is the influence of the price or in the margarine.
bargaining strategy. The buyer has a strong A substitute product can give a big threat in the
and magnified bargaining power. The threat of industry environment if the following factors are
its bargaining power will be less if the following noticed:
factors are noticed: a. Switching cost is low
a. There are several suppliers available b. Preferences and tastes of the
in the market. b. The buyer has the customers easily change
potential for backward integration.
 c. Product differentiation is highly enterprise is created by an entrepreneur and
noticeable the process is called:
d. The quality of substitute products
dramatically improves "Entrepreneurship."
e. The price of substitute product is Entrepreneurs are innovators. They are willing
substantially lower to take the risks and generate unique ideas
that can provide profitable solutions to the
5. Suppliers needs of the market and the society.
The Suppliers are the one that provide
something that is needed in business
operations such as office supplies and Factors Affecting Entrepreneurship
equipment. In an example where supplies and 1. Personality Factors which include:
services being offered is unstable the intensity a. Initiative - doing things even before
of the threat is strong in this kind of the being told.
competitive force in the industry. This can be b. Proactive - which means he can
noticed if there is the presence of the following classify opportunities and seize it.
factors: c. Problem Solver - which means he
a. The supplier has the ability for can retain good relations with other
forward integration people.
b. Suppliers in the industry are few, but d. Perseverance - meaning he will
the sales volume is high pursue things to get done regardless of
c. Substitute products are not readily challenges.
available in the market e. Persuasion - means that he can
d. The switching cost is very high entice people to buy even if they don't
e. The product or service is unique want to.
f. A Planner - he makes plans before
doing things and does not fail to
monitor it.
RELEVANCE OF ENTREPRENEURSHIP TO g. Risk-taker - which means that he is
AN ORGANIZATION willing to gamble but he will calculate it
1. Development of Managerial Capabilities - first.
this means that one of the benefits
an entrepreneur gets is to develop his 2. Environmental Factors which include
managerial skills. political, climate, legal system,
economic and social conditions and market
2. Creation of Organizations - which means situations.
that because of entrepreneurship many Common Competencies in Entrepreneurship
organizations will exist. 1. Decisive - an entrepreneur must be
firm in making decisions.
3. Improving Standard of Living - this means 2. Communicator - an entrepreneur
that entrepreneurship can lift up the economic must have a convincing power.
status of an individual. 3. Leader - an entrepreneur must have
the charisma to be obeyed by his
4. Means of Economic Development - this employees.
means that not only the life of the entrepreneur 4. Opportunity seeker - an
is improved but also the society where the entrepreneur must have the ability to be
business is located. the first to see business chances.
5. Proactive - an entrepreneur can
Concept of Entrepreneurship control a situation by making things
happen or by preparing for possible
The word "entrepreneur" was derived from future problems.
the French verb enterprendre, which means 6. Risk Taker - an entrepreneur has the
"to undertake." This is pinpointing to those courage to pursue business ideas.
who "undertake" the risk of enterprise. The 7. Innovative - the entrepreneur has big
business ideas and he does not stop
 improving and thinking of new 4. Sales - the entrepreneurship graduate can
worthwhile ideas for his business. apply as a salesman.
5. Business Reporter - the entrepreneur
Core Competencies in Entrepreneurship being expert in the field, can be employed as a
business reporter.
1. Economic and Dynamic Activity -
Entrepreneurship is an economic activity MARKET RESEARCH
because it involves the creation and operation
of an enterprise with a view to creating value or Market research - Firms and other business
wealth by ensuring optimum utilization of companies need to understand their service
limited resources. offerings and their customers to ensure that
their services will be adopted as solutions to
2. Innovative - The entrepreneur constantly consumer needs. In order for the firms to
looks for new ideas, thus he needs recognize the needs of the market or the
to be creative. customers, they need to conduct market
3. Profit Potential - The entrepreneur can be research.
compensated by his profit coming from the
operation. The Market Research or Marketing
4. Risk bearing - The entrepreneur needs to Research Process can be defined as the
gamble but wise enough to offset the risk. process of gathering, analyzing and
interpreting the information about the products
Types of Entrepreneurs or the services to be offered for sale to the
potential consumers in the market.
1. Innovative Entrepreneurs - They are those
who always make new things by thinking of There are different ways to collect the data.
new ideas. They have the ability to think The most important methods you can consider
newer, better and more economical ideas. are surveys, focus group discussion and
2. Imitating Entrepreneurs - They are those interviews.
who don't create new things but only follow the DATA COLLECTION is the most valuable tool
ideas of other entrepreneurs. of any type of research study.
3. Fabian Entrepreneurs - They are skeptical
about changes to be made in the organization. Inaccurate data collection may cause
They don't initiate but follow only after they are mistakes and ultimately lead to invalid results.
satisfied.
4. Drone Entrepreneurs - They are those who TIPS in GATHERING DATA
live on the labor of others. They are die-hard
conservatives even ready to suffer the loss of
business. • Organize collected data as soon as
5. Social Entrepreneurs - They are those who it is available
initiate changes and drive social innovation • Know what message you want to
and transformation in the various fields such as get across and then collect data
education, health, human rights, environment that is relevant to the message
and enterprise development. • Collect more data
• Create more data
Career Opportunities of Entrepreneurship • Regularly run experiments or collect
data
1. Business Consultant - with the expertise of • Challenge your assumptions
in the field of entrepreneurship, he can be a • Set reasonable expectations
very good source of advices to other • Take note of interesting or
entrepreneurs and would be business men. significant data
2. Teacher - a graduate of an
entrepreneurship can use his knowledge in In this lesson, we will consider the
teaching. three different data collection techniques –
3. Researcher - the entrepreneur can be SURVEY (Questionnaire), INTERVIEW and
employed as a researcher by an enterprise. FOCUS GROUP DISCUSSION – and
evaluate their suitability under different gain their cooperation. It generates
circumstances. highest response rates in survey
research. They also allow the
SURVEYS are the most common way researcher to clarify indefinite
to gather primary research with the use of answers and when necessary, seek
questionnaires or interview schedule. These follow-up information.
can be done via direct mail, over the phone, • Telephone interviews are less
internet (e.g. Google) or email, face-to-face or expensive and less time
on Web (e.g. Skype or Viber). consuming, but the disadvantages
are that the response rate is not as
When designing or constructing your high as the face-to- face interview,
own research questionnaire, remember the but considerably higher than the
following guidelines. (Edralin, 2016) mailed questionnaire.

• Keep it simple as possible. FOCUS GROUP DISCUSSION (FGD) - is an

• Make sure it is clearly appealing excellent method for generating and screening
and easy to read. ideas and concepts. It can be a moderated
group interviews and brainstorming sessions
• Cluster or block related questions.
that provide information on user’s needs and
• Move from complex questions to behaviors.
more specific questions.
• Make sure questions are concise The following are considerations in the use of
and easily understood. focus group discussions in market research:
• Avoid questions that are difficult to
answer. • The length of the session is
between 90 and 120 minutes.
• Make sure any response scales
used are consistent with categories • Usually, conduct focus groups
that are mutually exclusive. discussion with 8 to 10 participants
per group.
• Assign an expert moderator /
INTERVIEW is one of the most reliable
facilitator who can manage group
and credible ways of getting relevant
dynamics.
information from target customers. It is
typically done in personal between the • Use a semi-structure or open-
researcher/entrepreneur and a respondent format discussion.
where the researcher asks pertinent questions • Strive for consistency in the group’s
that will give significant pieces of information composition (for example, it may
about the problem that he will solve. The not be advisable to have business
interview is also helpful even when the customers and retail customers in
business has already started because the the same focus group, their needs
customers’ feedback provides the are very different).
entrepreneur a glimpse of what the customers
think about the business. MARKETING MIX AND BRANDING

Interviews normally last from 15 to 40 Marketing Mix is a set of controllable and

minutes, but they can last longer, depending connected variables that a company gathers
on the participants’ interest in the topic. to satisfy a customer better than its
In a structured interview, the researcher competitor. It is also known as the “Ps” in
asks a standard set of questions and nothing marketing. Originally, there were only 4Ps but
more (Leedy and Ormrod, 2001). the model has been continually modified until
• Personal interviews are the it became 7P’s. The original 4 P’s stands for
traditional method of conducting an product, place, price and promotion.
interview. It allows the researcher Eventually, three elements have been added,
to establish relationship with namely: people, packaging and positioning
potential participants and therefore to comprise the 7 P’s.
 that customers use to get products from the
1. PRODUCT manufacturers.
The first P in the Marketing Mix is the
Product. Marketing strategy typically starts Channel 3 is called a "direct-marketing"
with the product. Marketers can’t plan a channel, since it has no intermediary levels.
distribution system or set a price if they don’t In this case the manufacturer sells directly to
know exactly what the product will be offered customers.
to the market.

Product refers to any goods or services that 3. PRICE

is produced to meet the consumers’ wants, Price is the value of money in exchange for a
tastes and preferences. Examples of goods product or service. Generally speaking, the
include tires, MP3 players, clothing and etc. price is the amount or value that a customer
Goods can be categorized into business gives up to enjoy the benefits of having or
goods or consumer goods. A buyer of using a product or service.
consumer goods may not have thorough
knowledge of the goods he buys and uses.
Examples of services include hair salons and 4. SALES PROMOTIONS
accounting firms. Services can be divided Sales promotion is any initiative undertaken
into consumer services, such as hair styling by an organization to promote an increase in
or professional services, such as engineering sales, usage or trial of a product or service
and accounting. (i.e., initiatives that are not covered by the
other elements of the marketing
Consumer Goods - The demand for communications or promotions mix).
consumer goods is a 'direct demand'.
Business Goods - The demand for business Sales Promotion Technique
goods is a 'derived demand'. It is derived from
the demand for consumer goods, which are • Free Gifts
made using the business goods. There are many ways to utilize this particular
sales promotion technique. A newly opened
2. PLACE store, for example, may offer the first 10
Place is the second P in the Marketing Mix. customers free items worth 100 pesos.
Place represents the location where the • Free Samples
buyer and seller exchange goods or services. Providing free samples is a technique used
It is also called as the distribution channel. It to introduce new products to the marketplace.
can include any physical store as well as Samples give the consumer a chance to see
virtual stores or online shops on the Internet. how well they like a product or try something
they otherwise would not normally buy.
Channel 1 contains two stages between • Free Trial
producer and consumer - a wholesaler and a A free trial is a way for a consumer to try a
retailer. A wholesaler typically buys and new product while eliminating risk. It may be
stores large quantities of several producers' used when a product is unique to the
goods and then breaks into bulk deliveries to marketplace.
supply retailers with smaller quantities. For • Customer Contests
small retailers with limited order quantities, Contests offer the customer a chance to win
the use of wholesalers makes economic prizes like cash or store merchandise.
sense. • Special Pricing
Special pricing is used to offer consumers a
Channel 2 contains one intermediary. In lower price for a period of time or to purchase
consumer markets, this is typically a retailer. in multiple quantities. For example, a retailer
A retailer is a company that buys products may offer a product that normally costs 35
from a manufacturer or wholesaler and sells pesos at a price of 3-for-100-pesos during the
them to end users or customers. In a sense, promotional period.
a retailer is an intermediary or middleman
5. PEOPLE elements, toxic materials etc. The packaging
should also be done so that children could
People - your team, the staff that makes it not easily use or dispose them.
happen for you, your audience, and your
advertisers are the people in marketing. This D. Waste reduction:
consist of each person who is involved in the Packaging also serves to reduce the amount
product or service whether directly or indirectly. of waste especially in case of food
distribution.
People are the ultimate marketing strategy.
They sell and push the product. People are 2) Containment:
one of the most important elements of the This involves merging of unit loads for
marketing mix today. shipping. It starts with spots of adhesives on
the individual shippers that stick them
6. PACKAGING together, straps of steel and plastic, entire
coverings of shrinkable or stretchable plastic
Packaging is the sixth P in the Marketing films and paper or corrugated wraps that
Mix. Packaging is a silent hero in the surround an entire pallet of product.
marketing world. Packaging refers to the
outside appearance of a product and how it is There are some special bulk boxes or pallet
presented to the customers. The best bins made from unusually strong corrugated
packaging should be attractive enough and board or fabricated form plastics or metal, the
cost efficient for the customers. Packaging is method of which depends on the type and
highly functional. It is for protection, weight of product and its protective needs.
containment, information, utility of use and The cargo containers made of aluminum
promotion. used to hold many pallet loads of goods can
be transferred to or from ships, trains and
Five Basic Functions of Packaging flatbed trucks by giant cranes.

1) Protection:
3) Information:
One of the major functions of packaging is to
The packaging conveys necessary
provide for the effects of time and
information to the consumers. The common
environment for the natural and
information that packaging provides include
manufactured products. The protection
general features of the product, ingredients,
function can be divided into some classes.
net weight of the contents, name and address
of the manufacturers, maximum retail price
A. Natural deterioration:
(MRP).
It is caused by the interaction of products with
water, gases and fumes, microbiologic Packaging of medicine and some food
organisms like bacteria, yeasts and molds, products is required to provide information on
heat, cold, dryness, contaminants and insects methods of preparations, recipes and serving
and rodents. ideas, nutritional benefits, and date of
manufacturing, date of expiry, warning
B. Physical protection:
messages and cautionary information.
The packaging is also used for physical Sometimes, the color of the packaging itself
protection, which include improving shock provides some information.
protection, internal product protection and
reducing shock damage caused from 4) Utility of use:
vibration, snagging, friction and impact. The convenience packaging has been
devised for foods, household chemicals,
C. Safety:
drugs, adhesives, paints, cosmetics, paper
A special kind of protective packaging is goods and a host of other products. This type
required for products that are deemed of packaging includes dispensing devices,
harmful to those who transport them or use prepackaged hot metals, and disposable
them. These products include extremely medical packaging.
inflammable gas and liquid, radioactive
5) Promotion: a. Functional. This way focuses on the
Companies use attractive colors, logos, assessments of success in terms of
symbols and captions to promote the product fast and profitable reasons. For
that can influence customer purchase example, the purpose of the business
decision. is to make money.
b. Intentional. This way focuses on
7. POSITIONING fulfillment as it relates to the capability
When a company presents a product or to generate money and do well in the
service in a way that is different from the world.
competitors, they are said to be “positioning”
it. Positioning refers to a process used by 2) Consistency
marketers to create an image in the minds of
a target market. The significance of consistency is to avoid
things that don’t relate to or improve your
Solid positioning will allow a single product to brand. Consistency aids to brand recognition,
attract different customers for not the same which fuels customer loyalty.
reasons.
3) Emotion
BRANDING There should be an emotional voice,
whispering "Buy me". This means you allow
Brand Name is a name, symbol, or other the customers to have the chance to feel that
feature that distinguishes a seller's goods or they are part of your brand.
services in the marketplace. Your brand is You should find ways to connect more
one of your greatest assets because your deeply and emotionally with your customers.
brand is your customers' over-all experience Make them feel part of the family and use
of your business. emotion to build relationships and promote
Brand strategy is a long-term design for the brand loyalty.
development of a popular brand in order to
achieve the goals and objectives. A well- 4) Flexibility
defined brand strategy shakes all parts of a
business and is directly linked to customer Marketers should remain flexible too in this
needs, wants, emotions, and competitive rapidly changing world. Consistency targets
surroundings. at setting the standard for your brand,
Branding is a powerful and sustainable flexibility allows you to adjust and differentiate
high-level marketing strategy used to create your approach from your competition.
or influence a brand. Branding as a strategy
to distinguish products and companies and to According to Kevin Budelmann, "Effective
build economic value to both customers and identity programs require sufficient
to brand owners, is described by Pickton and consistency to be identifiable, but sufficient
Broderick in 2001. variation to keep things fresh and human," so
if your old tactics don't work anymore, don't
Commonly Used Branding Strategies be afraid to change. It doesn’t mean it worked
in the past it may still work now.
1) Purpose
"Every brand makes a promise. But in a
market in which customer confidence is little
and budgetary observance is great, it’s not 5) Employee Involvement
just making a promise that separates one It is equally important for your employees to
brand from another, but having a significant be well versed in how they communicate with
purpose," (Allen Adamson). How can you customers and represent the brand of your
define your business purpose? According to product.
Business Strategy Insider, purpose can be
viewed in two ways:
6) Loyalty
Loyalty is an important part of brand
strategy. At the end of the day, the emphasis
on a positive relationship between you and
your existing customers sets the tone for
what potential customers can expect from
doing business with you.

7) Competitive Awareness
Do not be frightened of competition. Take it
as a challenge to improve your branding
strategy and craft a better value in your
brand.