Entrep Quiz 2 Flashcards
are your
market’s stated or silent problems
which refer to existing
inefficiencies, awkward workflows
or non-optimal solutions.
Market Problems
People who have already purchased your
product.
Existing customers
People who have not yet purchased your product but are
considering it.
Prospects
People in your target market who are not
currently looking for a solution.
Target market users:
are explicit statements from your market
that declare, “I want a product to do X.” While stated
needs are important
Stated needs
which are problems with yet undefined
solutions.
Silent needs
Once you identify a problem that applies to the market,
ensure that potential and existing customers actually care
about the problem. Is the perceived problem actually
urgent? Will customers care if the problem is not solved?
Do they have another way to solve this problem?
Is the market problem urgent?
Determine if the identified market problem applies to a significant
percentage of your target market. Use quantitative research to
collect the data
Is the market problem pervasive?
If the problem is significantly urgent and pervasive, chances are
good that customers would agree to pay for a solution. The next
step would be to understand how much they would be willing to
pay for a solution to this problem.
Will your buyers pay to have this problem solved?
ESSENTIALS IN ENTREPRENEUR’S
OPPORTUNITY SEEKING
Entrepreneurial mind frame
Entrepreneurial heart flame
Entrepreneurial gut game
This allows the entrepreneur to see things in a
very positive and optimistic way in the midst of difficult situation. Being a risk
- taker, an entrepreneur can find solutions when problems arise
Entrepreneurial mind frame
Entrepreneurs are driven by passion; they are
attracted to discover satisfaction in the act and process of discovery. Passion
is the great desire of an entrepreneur to achieve his/her goals.
Entrepreneurial heart flame
This refers to the ability of the entrepreneur of
being intuitive. This also known as intuition.
Entrepreneurial gut game
SOURCES OF
OPPORTUNITY
CHANGES IN THE
ENVIRONMENT
TECHNOLOGICAL DISCOVERY AND ADVANCEMENT
GOVERMENT’S THRUST, PROGRAMS, AND POLICIES
PEOPLE’S INTEREST
PAST EXPERIENCE
A person with
entrepreneurial interest sees
possibility of business
opportunities in any new
discovery or because of the use
of latest technology.
TECHNOLOGICAL
DISCOVERY AND
ADVANCEMENT
Entrepreneurial ideas arise when
changes happen in the external
environment. A person with an
entrepreneurial drive views
these changes positively.
CHANGES IN
THE
ENVIRONMENT
The priorities, projects, programs,
and policies of the government are
also good sources of ideas.
GOVERNMENT’S THRUST, PROGRAMS, AND
POLICIES
The interest, hobbies, and
preferences of people are rich
sources of entrepreneurial
ideas, like the increasing
number of Internet Cafés at
present could lead to the
strong attachment of young
people to computers.
PEOPLE’S
INTEREST
The expertise and skills
developed by a person who has
worked in a particularfield may
lead to the opening of a related
business enterprise.
PAST EXPERIENCE
*Is the rivalry between
companies selling similar
products and services with the
goal of achieving revenue,
profit and market share growth
COMPETITION
refers to the immediate
industry in which your
company is doing
business.
COMPETITIVE
ENVIRONMENT
*Process of collecting
information about the external
marketing environment to
identify and interpret potential
trends
ENVIRONMENTAL SCANNING
THREE TYPES OF COMPETITORS
DIRECT COMPETITORS
INDIRECT COMPETITORS
REPLACEMENT COMPETITORS
is someone
that offers the same products.
Direct competitors create profit
all in the same way.
DIRECT COMPETITOR
offer the
same products but have
different goals. They do get
revenue the same way.
INDIRECT COMPETITORS
offer
substitute products. Usually, the
substitute products are of a different
price or quality than the dominant
product in the market.
REPLACEMENT COMPETITORS
PORTER’S MODEL OF FIVE STRATEGIC
FORCES AFFECTING INDUSTRY
COMPETITION
Industry Competitors
New Entrants
Buyers
Suppliers
Substitutes
intensity of rivalry
among firms in the industry.
Industry competitors
threats of new competitors
entering the market.
New entrants
*Something unique to offer, has
tremendous strength
RIVALRY AMONG EXISTING COMPETITORS
The firm’s own suppliers can pose a threat
as well if the firm is too dependent on these
suppliers and the suppliers know it. The
suppliers can decide to increase their prices
or to even become potential entrants to the
industry as well.
BARGAINING POWER OF SUPPLIERS
*If barriers are low, new competitors are
bound to enter the market. New
competitors weaken your market. In the
case where there are very minimal
requirements in opening a business, anyone
who have what it takes can always join the
competition.
THREAT OF NEW ENTRAN
Customers drive down prices, handful buyers
dictate the prices. If the firm is too dependent on its buyers, the buyers
may sense this. They might band together and
threaten the firm through additional demands. Buyers
may also become potential entrants into the industry
if they feel that entering the industry is a simple
matter after all.
BARGAINING POWER OF CUSTOMERS
In an industry where
substitution easy and
inexpensive competitive
power is weak.
THREAT OF SUBSTITUTES
IDENTIFYING BUSINESS IDEAS
LOOK WITHIN YOU
LOOK AT OTHER PEOPLE’S INNATE ABILITIES
AND KNOWLEDGE
LOOK AT THE MARKET
LOOK FOR PROBLEMS
LOOK FOR HELP
LOOK FOR TRIED AND TESTED IDEAS
What are your hobbies, talents, skills, and
interests?
LOOK WITHIN YOU
Observe your community. What skills are available
in the locality? Can these be developed as
business ideas?
LOOK AT OTHER PEOPLE’S INNATE ABILITIES
AND KNOWLEDGE
There are various
ways of looking at
the market for
business ideas
LOOK AT THE MARKET
Problem could be a
blessing in disguise
for entrepreneurs.
LOOK FOR PROBLEMS
Try visiting the nearest
Negosyo Center in your area
and look at available business
assistance programs.
LOOK FOR HELP
Another option for entrepreneurship
is franchising, meaning you buy an
almost ready-made business. You
need not start a new business from
scratch. You can buy an existing
business or secure a franchise of a
tried and tested business.
LOOK FOR TRIED AND TESTED IDEAS
The second step after identifying business ideas is to
shorten your list of choices through a
Screening business
opportunities
It is of primary importance that you, as a future entrepreneur,
to actually like the business you would want to enter into.
Your personal Preference
No matter how much you like your own business, if your
customers do not agree with you, you will basically have
no business with him/her. Thus, it is of equal importance
to study and abide by the customer requirements
Customer requirements
In our pursuit of satisfaction, we should
remember to keep ourselves grounded to the
fact that our products or services should also
be realistic. It is easy to get carried away by our
own and our customers’ ideals to the point of
impossibility.
Viability
You should be able to answer these questions: Did I
financially profit from the sale of the product or
service?
Profitability
Will help you find out ways
of distinguishing your product or service from those
already in the market and give you the market position
you aim for.
Innovation or differentiation
Two critical steps in the strategic process are
analysis of the organization and analysis of
the environment. These two steps may be
approached with a technique known as
SWOT analysis
Something that a company is good at doing.
It is a quality that produces a competitive
advantage for the company
strengths
Something that a company lacks
It is a quality that puts the company at a
disadvantage.
weaknesses
A factor in the external
environment that is expected
to work favorably towards
company operations.
Opportunity
A factor in the external
environment that is expected
to have a negative effect on
company operations
threats
is a business or marketing statement that summarizes
why a consumer should buy a company’s product or use its service.
Value Proposition (VP)
. In creating Value Proposition, entrepreneurs will consider the
basic elements:
- Target Customer
- Needs/opportunity
- Name of the product
- Name of the enterprise/company
refers to how you sell your product or services to your customer. You will address the wants and desires of your customers
Unique Selling Proposition (USP)
Some tips for the entrepreneur on how to create an effective unique selling proposition
to the target customers are:
- Identify and rank the uniqueness of the product or services character
- Be very Specific
- Keep it Short and Simple (KISS)
These are the things that are essential for us
NEEDS
These are desires, luxury, and extravagance that
signify wealth and an expensive way of living.
WANTS
Refers to the group of customers or organizations that is interested in the product
Market
Is the market a company wants to sell its products and services to
Target Market
A marketing term that refer to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action
Market Segmentation
TYPES OF MARKETING STRATEGIES
Geographic
Demographic
Psychological
Behavioral
Climate
b. Dominant
ethnic group
c. Culture
d. Density
(either rural
or urban
Geographic
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size
Demographics
are
important because
they provide a broad
understanding of the
different
characteristics of a
population.
Demographics
Needs and wants
b. Attitudes
c. Social class
d. Personality traits
e. Knowledge and
awareness
f. Brand concept
g. Lifestyle
Psychographics
These behaviors may relate to the customers Perceptions ,
Knowledge , Reaction , Benefits , Loyalty and Responses
Behavioral
It helps marketing and product teams learn how different types
of prospects and customers are likely to use their product, how
engaged they’ll be, and how long they might remain customers.
Behavioral
are the
specific characteristics that the
customers need from a product or a
service.
Customer
Requirements
An intangible thing or product that cannot be
touched but the customer can feel the
fulfillment.
Service Requirement
Tangible thing or things that can be
seen. Characteristic specifications that a consumer expects to be fulfilled in the product. Costumers will avail services as aproduct, then various service
requirements can take the form of
output requirements. F
Output Requirement
is like a size of the arena where the entrepreneurs will play
their business
Market size
First step in determining the Market Size
o estimate the potential market
Second step in determining the Market Size
estimate the customers who probably dislike to buy your product or avail
the services.
Third step in determining the Market Size
estimate the market share
the most important factor if you ever need to raise funding for your
business.
Market size
Strategies for reaching target market
Undifferentiated marketing/Mass Marketing
Differentiated marketing/Segment Marketing
Concentrated Marketing (niche marketing):
Micromarketing
When a firm produces only one
product or product line and
promotes it to all customers with
a single marketing mix
Undifferentiated marketing/Mass Marketing
*When a firm produces numerous
products and promotes them with a
different marketing mix designed to
satisfy smaller segments
Differentiated marketing/Segment Marketing
When a firm commits all of its
marketing resources to serve a
single market segment.
Concentrated Marketing (niche
marketing):
Involves targeting potential
customers at a very basic level,
such as by ZIP code, specific
occupation, lifestyle, or individual
household.
Micromarketing
includes observation
networking, interviewing
and experimentation. It
means that the person
who needs the data does
the gathering himself or
herself
PRIMARY SOURCES
means that somebody
else has gathered the
data and you are a
secondary user of said
data.
SECONDARY SOURCES
One of the many ways to assess or validate customer’s
satisfaction on the product or service being offered in the
market is by means of
Interview
This is the process of
gathering people with
similar interest, background
and experiences to discuss
on special topic of interest in
order to gather vital
information
FOCUS GROUP DISCUSSION
to gather vital
information that is crucial
in doing market research.
This important technique is
made possible by devising
a good set of
questionnaires which
orientation is driven by
knowing what products or
services will have a good
potential once offered.
surveys
Two critical steps in the strategic process
analysis of the organization and analysis of
the environment.
