Entrepreneurship Flashcards
It refers to mode, means, or tools used by the entrepreneur to position the product in the target market to efficiently and effectively deliver to the consumers and to convince them about the benefits that they will derive from buying the product.
Marketing Mix
Has defined as the set of marketing tools that the firms uses to pursue its marketing objectives in the target.
Marketing mix
also known as “Ps” in marketing
Marketing Mix
4 Ps of Marketing
- Product
- Price
- Place
- Promotion
It refers to the tangible goods or intangible service offered by the business to the target consumers.
Product
Must satisfy the needs of the customers better than the other competing products.
Product
an article or substance that is manufactured or refined for sale
Product
is the concept in marketing where they make different product or service available to the customers on top of the primary product.
Product Mix
Mercury Drug, it was formed and designed primarily sell a complete line of pharmaceutical product however today already included household merchandise, food, toilletries & etc.
Example of Product Mix
The process of moving products from the producer to the intended user .
Place
The entrepreneur must establish his business or product in the most strategic place or location, or put your business where your consumers are willing to buy the product.
Place
When the supply of the competing product is high, the price of the product is usually low.
Availability of the Competing Product
Producer tend to gradually pull down the prices when the supply is high, and adopt a reverse mechanism when the supply is low.
Availability of the Competing Product
It refers to the amount spent by the manufacturer in view of the expected future benefits.
Cost
It refers to the wages paid to the worker.
Direct Labor
It includes direct materials and labor and other expenses ( light, water, fuel, machinery maintenance.
Factory Overhead
It pertain to the materials that form part of the finished product.
Direct Materials
These kind of product are used as raw materials of other manufacturing entities
Industrial Products
Have higher prices compared to consumers product.
Industrial Products
Prices remain fixed for long period, while consumer product may undergo several price changes within a very short span of time.
Industrial Products
used and consumed by individual consumers, classified into convenience product, shopping product, o - highly priced product.
Consumer Product
2 Types of Product
- Industrial Product
- Consumer Product
Influence the Setting of Prices of Goods and Services:
- Availability of the Competing Product
- Cost of Making the Product
- Type of Products
- Presence of Substitute Product
- Stages of the Product in the Market
- Demographic profile of target consumers
is a threat to the primary product, the customer can easily switch and buy the products with lower prices.
Presence of Substitute Product
The entrepreneur must continuously monitor and study the entrepreneurial opportunities of substitute product.
Presence of substitute product
Stages Of The Product In The Market
The product usually undergoes the following stages:
- Introduction Stage
- Growth Stage
- Maturity Stage
- Decline Stage
The pricing strategies most often used by retail business includes
Psychological Pricing and Discount Pricing
The product are sold at a lower price in limited temporary period like midnight sale, Christmas sale, or anniversary sale.
Promotional Pricing
The product are sold at prices that end in ODD number 5 like P99.95, P199.95, appear cheaper compared to product with prices that end in even number 0 like P100, or P200.
Odd Or Even Pricing
The products are purposely sold at a higher price in order to create a high or superior image like a skin lotion sold at P700 whereas other sold P150-P200.
Prestige Pricing
Refers to the mode of conveying the presence and attributes of the product to the target consumers.
Promotion
Through promotions, the business communicates to the target consumers and elicits their desire to buy it.
Promotion
The most important element in advertising is the ___________ that must be conveyed to the consumers.
Message
the most common medium of promoting a product or service is through advertising in the following forms
Advertising
Another way or promoting the product or service to the target consumers through media coverage.
Publicity
Involves a salesperson who has personal and direct contact with the prospect consumers.
Personal Selling
The salesperson is in a competitive position to influence the consumers to buy the product.
Personal Selling
It aims to influence the target consumers to buy the product or avail of the service now and not tomorrow.
Sales Promotion
Involves giving incentives to consumers so they will acquire the product or service.
Sales Promotion
A product or service through direct marketing is undertaken through the internet, the entrepreneur starts by building a consumers database, performs a one on one approach in building consumers relationships and sells the product online.
Promoting
They can choose from a wide range of product selection and buy the desired product anywhere and anytime from the online seller, product sold through ________________ cheaper than those sold in physical store.
Direct Marketing
The most popular promotional tools adopted in sales promotions category are following:
- Discounts
- Coupons
- Cash
- Gift certificates
The modified model of the Marketing Mix has added _______ as another elements that assists in product positioning.
People
Refers to the process of putting the product in package or container.
Packaging
The basic purpose of _______ is to protect the product from spillage, damage or spoilage.
Packaging
Refers to the place occupied by the product in the minds of the consumers.
Positioning
It is a marketing strategy that defines the target consumers.
Positioning
For example, in relation to the product image, there must be a quality product that satisfies the needs or wants of consumers.
Positioning
Based on the customer - oriented perspectives, the 7Ps may be presented in customers driven strategy as follows.
- Customers satisfaction for product.
- Customer convenient for place.
- Customer cost lowered
- Customer information for promotions
- Customer quality assurance for people
- Customer safety for packaging 7. Customer decision for positioning
Allows the consumers to buy or avail the product at a price lower than the regular selling price
Discounts
Are form of incentives to the consumers for patronizing a store.
Coupons
means of promoting the product helps the business in gaining the loyalty of the consumers.
Cash reward
Arw incentives to the consumers who have completed the required accumulated amount of purchase.
Gift certificates
Is actually the roadmap of the new business. It provides a clear direction to any uncertain business endeavor.
Business Plan
Another document that must be prepared and has equal importance as the business plan.
Feasibility Study
Two major tests are conducted every time a new business idea is created.
a. test of possibility
b. test of feasibility
Defined as a detailed and integrated written document that describes the various activities involved in opening and operating a new entrepreneurial venture.
Business Plan
Parts of Business Plan
- Introduction
- Executive summary
- Environmental analysis
- Business description
- Organizational plan
- Production plan
- Marketing plan
- Financial plan
- Appendix
Presents the general perspective of the business.
Introduction
It may consist of 1 to 2 pages.
Introduction
The introduction includes, among the others, the following sections:
1.Proposed name of the business
2.Address of the business 3.Name of the owner or owners 4.Description of the business 5.Location of the business 6.Funding requirement and source
The formulation and drafting of the proposed business name is not as simple as it sounds. It is a delicate and important entrepreneurial task. Remember that the name of the business may exist in the market for many years. Careful and in-depth planning is of prime importance.
Proposed Name of the Business
It is important that the address of the business is correctly written because all business correspondence is mailed to the business address.
Adress of the Business
Nowadays, it is also necessary for the business to have an email address to facilitate electronic communication.
Address of the Business
The name of the owner must be properly stated. In case the venture is a partnership, the name of the partners, including the extent of their liabilities, must be indicated.
Name of the Owner
A brief description of the business must include information about the type of product or service that the business intends to produce or provide. It may include a brief information about the ultimate mission, vision, and objectives of the business. The other products or services that the business plan to produce must also be mentioned in the description of the business.
Description of the Business
There are no rigid rules in the selection of the business location since several variables affect the selection of the business location. The basic entrepreneurial consideration is to place the proposed business in a strategic location that will assure competitive advantage.
Location of the Business
The following factors should be considered when deciding on the location of the proposed business:
- Proximity to the target consumers
- Distance from the sources of raw materials, labor, and utilities
- Availability and cost of transportation
- Peace and order situation
- Presence of direct competitors
- The geographic and climatic conditions
Funding Requirement and Source
The estimated total initial cost of the business venture must be clearly indicated. It should include the projected breakdown or allocation of the total cost. This section also presents the source or sources of funds.
It points out the overall highlights of the business plan.
Executive Summary
Commonly the last section to be written after all other major parts have been completed. However, the executive summary must NOT, in any manner, provide a summary of the different major sections of the business plan. It must be written in simple language that can be easily understood and at the same time attract the attention and influence the decision of the reader.
Executive Summary
The executive summary must include the following sections:
1.Vision, mission, goals, and objectives of the business 2.Business model
3.Business and product position
4.Wealth improvement approaches
5.Parties supporting the business
Provides a detailed description of the business in different aspect.
Organization Plan
Presents or describes activities related to the production of goods.
Production Plan
Outline the various activities from the acquisition of raw materials to the delivery of the product to the target consumers.
Operation Plan
It is actually the roadmap of the new business. It provides a clear direction to any uncertain business endeavor.
Business Plan
It is defined as a detailed and integrated written document that describes the various activities involved in opening and operating a new entrepreneurial venture.
Business Plan
It determine the external and internal factors affecting the performance of the business.
Environmental Analysis
This presents the nature and form of the business to be undertaken.
Business Description
It refers to the process or technique of converting raw materials into goods.
Method
Four M’s
- Manpower
- Method
- Machine
- Materials
It simply refers to the human workforce involved in the manufacture of products. Considered as the most critical and important factor of production.
Manpower
The selection of method of production is dependent on some factors, namely,
- Product to produce
- Mode of production
- Manufacturing Equipment to use, and
- Required skills to do the work.
The product is the physical output of the whole collection process.
Product to Produce
