FROILAN D.

LOPEZ HIGH SCHOOL

SENIOR HIGH SCHOOL

Recognizing the Potential

Market:
A Review
Entrepreneurship
Key Takeaways: The Entrepreneurial Process

Opportunity
Developing a
Spotting and
Business Plan
Assessment

Running the Determining the

Business Capital Needed
Key Takeaways: Seeking, Screening, and Seizing
• The 3S of opportunity spotting and assessment is the
framework that most of the promising entrepreneurs
use to finally come up with the ultimate product or
service for a specific opportunity.
• An opportunity is an entrepreneur’s business idea that
can potentially become a commercial product or
service in the future.
Key Takeaways: S1: Seeking the Opportunity
• First step and most difficult process of all due to
number of options that the entrepreneur will have to
choose from.
• Involves development of new ideas from sources:
• Macro-environmental sources
• Micro-market sources
Key Takeaways: S2: Screening the Opportunity
• Opportunity screening is the process of cautiously
selecting the best opportunity. The selection will
depend on the entrepreneur’s internal intent (personal
intent) and external intent (addressing the compelling
needs of the target market.
• Risk appetite – entrepreneur’s tolerance of business
risks
Key Takeaways: S3: Seizing the Opportunity
• Opportunity seizing is the last step in opportunity
spotting and assessment.
• This is the “pushing through” with the chosen
opportunity.
 FROILAN D. LOPEZ HIGH SCHOOL
SENIOR HIGH SCHOOL

The Marketing Plan

Entrepreneurship
Learning Objectives:
• At the end of this lesson, the learner should be able to:
• Describe the unique selling proposition and value proposition that
differentiates one’s product/service from existing products/services
(CS_EP11/12ENTREP-0d-7)
• Determine who the customers are in terms of:
(CS_EP11/12ENTREP-0d-8)
• Target market
• Customer requirements
• Market size
• Validate customer-related concerns through:
(CS_EP11/12ENTREP-0d-g-9)
• Interview
• Focused Group Discussion (FGD)
• Survey
• Describe the Marketing Mix (7Ps) in relation to the business
opportunity (CS_EP11/12ENTREP-0h-j-10)
• Develop a brand name (CS_EP11/12ENTREP-0h-j-11)
Business Plan
• A business plan is a comprehensive paper that details
the situation, analysis, objectives, strategies and
tactics, and how to monitor and control the enterprise.
Business Plan
Business Plan
Elements of a Business Plan
Checkpoint:
• What is a business plan?
• What are the major parts of a business plan? Explain
the contents of each.
Value Proposition
• Value proposition states why a customer should buy a
certain product or service.
Creating an effective value proposition:
1. Prepare a situation analysis that details the problems of
the customers.
2. Make your value proposition straight to the point, simple,
and specific.
3. Highlight of the value of your product or service.
4. Adapt the language of the market.
5. Add credibility-enhancing elements such as actual
testimonials.
6. Differentiate your value proposition with your competitors.
Value Proposition
• Aling Tere’s Sari Sari Store
• “Tindahang maaasahan, bukas kahit anong oras.”
Unique Selling Proposition
• Refers to how you will sell the product or service to
your customers.
• After you create your value proposition, you have to
figure out how to advertise or promote the product or
service.
Creating an effective unique selling proposition:
1. Identify and rank the uniqueness of the product or
service attribute.
2. Be very specific.
3. KISS (Keep it short and simple)
Unique Selling Proposition
• Using the 7Ps
Product or Service – retail products
Place – near a call center, a public hospital, and
construction site
Price – competitive
Promotion – signage
People – three shifts of Aling Tere’s assistants (3)
Packaging – semi-convenience store (2)
Process – only sari-sari store that operates 24/7 (1)
Group Activity: (15 minutes)
• Look around your locality, and choose a business that
you are very interested with. Cite the reasons.
• Present the business’ value proposition and unique
selling proposition.
• On your selected opportunity, what are your value
proposition and unique selling proposition?
Checkpoint:
• What is a business plan?
• What is value proposition?
• What is unique selling proposition?
Customer Requirements
• Customer requirements are specific features and
characteristics that the customers need from a product
or service.
• Example:
• Restaurant – cuisine, ambiance, service
• Spa and Salon – service
• Smartphone – ROM and RAM, brand, camera
• House and Lot – location, build quality, real-estate agent
Know Your Customers
• Marketing research is a comprehensive process of
understanding the customers’ intricacies and the
industry they revolve in.
• Market size – arena where the business will play. It is
the approximation of the number of buyers and sellers
in a particular market.
1. Market universe
2. Eliminate customers who are unlikely to buy
3. Market share
Know Your Customers
• Direct competitors – they offer exactly the same
product and are structured similarly with other existing
business
• Indirect competitors – they don’t offer the same product
and are not similarly structured but still compete with
your business
Group Activity: (10 minutes)
Mr. Alvin Antonio wants to establish a rice retailing business
in his area in San Isidro. He wants to know if this business is
worth his capital and effort. He dug deep and found that
there are approximately 500 families in San Isidro with an
average of five members per family. He did a survey and
found out that only 475 families eat rice; they consume 1 kilo
of rice per day. There are four other rice retailers in the area
that have been there for 10 years already, and they have
equal market share of 20% each. The other 20% of the
market is buying in bulk from groceries or convenience
stores. The average net profit per kilo is Php10. How big is
the market size and market size profit and what could be the
potential market share of Alvin’s rice retail business?
Group Activity: (10 minutes)
Market size = 475 families x 1 kilo/day x 365 days
173,375 kilos of rice
Market size profit = 173,375 kilos x Php10
Php1,733,750
Potential market share = Php1,733,750 x 16%
Php277,400
Checkpoint:
• What is customer requirements?
• What is marketing research?
• What is market size?
Primary and Secondary Target Market
• Market intelligence – includes customer profiling,
drives the entrepreneur on what correct stages and
tactics to employ.
• Market segmentation – process of grouping similar or
homogeneous customers according to demographic,
psychographic, geographic, and behavior.
• Primary target market – target market who have
enough purchasing power or have larger demands.
• Secondary target market – target market who don’t
have enough purchasing power or have fewer
demands.
Market Segmentation: Demographic
• Also called socio-economic segmentation
• The process of grouping customers according to
relevant socio-economic variables for the business
venture, e.g. income range and social class,
occupation, gender and age, and religion and ethnicity.
Income Range
• Income range and social class of the customers are
very important factors for the entrepreneur because
these represent the purchasing power of the market.
Example:
• H&M
• Uniqlo
• Bench
• Penshoppe
• Divisoria
Occupation
• To determine the customers’ income and their daily
routine where goods and services can be properly
positioned.
Example:
• Coffee shop
• Salon and massage spa
• Printing services
• Money remittance centers
Gender and Age Group
• Life cycle of customers and their gender influence their
buying behavior.
Gender and Age Group
Sex and Age
Potential Products or Service Demand
Group
Male Products: Trendy clothes, rubber shoes, soft drinks, chip, prepaid
Teenagers cellphone load, sport apparel
(13-19) Services: Cool hangout places, gyms, barber shops
Products: Beauty products, bags, clothes, perfumes, magazines,
Single females shoes
(20-30) Services: Spa, beauty clinics, gyms, beauty salons, coffee shops,
movie houses
Married couple Products: Food and grocery items, diapers, milk products, baby
with kids clothes
(30-50) Services: Theaters, babysitters, theme parks, travel packages
Senior citizen Products: Fruits and vegetables, hair dye, medicines
(60onwards) Services: travel packages, health services
Religion and Ethnicity
• Food choices, events and holidays, traditions and
beliefs, spending habits, and conservativeness.
Example:
• Shawls (Wraps)
• Meat shop
• Christmas sale
Market Segmentation: Psychographic
• Process of grouping customers according to their
perceptions, way of life, motivations and inclinations.
Example:
• Universities rely on advertising to sell their educational
services to aspiring students.
• Other universities, rely heavily on their reputation.
Market Segmentation: Geographic
• Grouping customers according to their location.
Examples:
• Meat shops in Region 3 and 4, not in ARMM and
Region 12
• Taxi business in Metro Manila, not in San Vicente
Market Segmentation: Behavioral
• Grouping customers according to their actions e.g.
behaviors in occasions, desired benefits, loyalty, and
usage of products or availment of services.
Examples:
• Christmas bazaar
• Valentines shop
• Bus in Metro Manilla
Group Activity: (15 minutes)
Using the proposed business, answer the following:
• Determine and calculate the market size where the
chosen business falls under.
• What do you think is the market segment that can be
considered as the primary target market (PTM) of the
business? Apply the market segmentation and classify
the PTM according to demographic, psychographic,
demographic, and behavioral.
• What do you think are the major customer
requirements of your PTM?
Checkpoint:
• Define the following:
• Market intelligence
• Market segmentation
• Primary target market
• Secondary target market
• What are the different market segmentation strategies?
Talking to Your Customers
• Conducting marketing research in a methodical way
will bring the entrepreneur a substantial bunch of
relevant ideas that can be used to effectively run the
business.
• Qualitative research includes identifying the written or
spoken opinions of customers.
• Quantitative research involves analyzing the
customers’ preferences by using relevant statistics.
Talking to Your Customers: Interview
• One of the most reliable and credible ways of getting
relevant information from the target customers.
• Unstructured interview – informal type of interview and
does not follow a specific set of questions.
• Structured interview – employs a specific set of
questions an produces quantitative data.
• Questions may be answerable by yes or no (closed-
ended), forced raking, multiple choice, or choose-the-
best.
Taking to Your Customers: FGD
• Commonly used by market researchers to capture
qualitative results from target customers.
• Encourages a group of participants to talk about a list
of topics prepared prior to the FGD.
Talking to Your Customers: Surveys
• Process of getting answers from sample of
respondents derived from a particular population.
• Sampling techniques – probability and nonprobability
sampling
• Sample size – researcher must be able to calculate the
appropriate sample size, not too large, not to small.
• Questionnaire blueprint – creating the set of questions
for the survey
Checkpoint:
• What are the two types of marketing research? What
are the difference?
• What are the three methods of conducting marketing
research? Explain each.
The Marketing Mix: The 7Ps of Marketing
• Product
• Place
• Price
• Promotion
• People
• Packaging
• Process
Group Activity: (10 minutes)
In relation to business, present your ideas on the
following:
• Product
• Place
• Price
• Promotion
• People
• Packaging
• Process
How each of these affects the business?
The Marketing Mix: The 7Ps of Marketing
7Ps: Product
• A product is any physical good, service or idea that is
created by an entrepreneur or an innovator in serving
the needs of the customers and addressing their
existing problems.
• Three-level Concept
• Core benefits – major factors why a customer buys a product
or avails of a service.
• Physical characteristics – packaging for products or a
physical evidence or customer experience for services.
• Augmented benefits – additional benefits.
7Ps: Place
• The place refers to a location or the medium of
transaction.
• Onsite – area’s population, traffic, buying behavior,
preferences for the location (Wi-Fi, spacious area,
parking)
• Online – web analytics (number of visitors, duration of
their stay on the website, frequently visited contents)
7Ps: Price
• Price is the monetary value that the entrepreneur
assigns to a certain product or service after
considering its costs, competition, objectives,
positioning, and target market.
• Most common pricing strategies:
• Bundling • Psychological pricing
• Penetration pricing • Premium pricing
• Skimming • Optional pricing
• Competitive pricing • Cost-based pricing
• Product line pricing • Cost plus pricing
7Ps: Price
• The profit can be determined if there is a proper
computation of costs associated with the product or
service.
• Variable costs or controllable costs – directly
proportional to the number of products or to the
number of services performed, e.g. ingredients for milk
tea
• Fixed costs or uncontrollable costs – not directly
proportional to the manufacturing of a product or to the
performance of the service, e.g. equipment, rental
costs, utilities
7Ps: Price
• Do not price the product or service below its cost.
• Monitor competitors prices.
• Align prices with the other 6Ps.
• Implement prices strategies that are relevant to you
market segment.
• Align prices with your business objectives.
7Ps: Promotion
• Involves presenting the products or services to the
public and how these can address the public’s needs,
wants, problems, or desires.
• Main goal is to gain attention
• Promotional tools:
• Advertising
• Selling
• Sales promotions
• Public relations
7Ps: People
• How employees serve customers
7Ps: Packaging
• How the product or service is presented to customers.
Order in Cashier (Pay in Cash)
Wait for your name to be called
Self-service
7Ps: Process
• Step-by-step procedure or activity workflow that the
entrepreneur or employees follow to effectively and
efficiently serve customer
Group Activity: (120 minutes)
• Using your proposed business present the 7Ps.
Checkpoint:
• What are the 7Ps of marketing? Explain each.
Fundamentals of Brand Management
• Brand refers to the identity of a company, of a product,
of a service, or of an entrepreneur.
• Brand management is the supervision of the tangible
and intangible elements of a brand.
• Branding is the process of integrating the strategies
formed from the marketing mix to give an identity to the
product or service.
• Establishing to target customers that the business is reliable
and trustworthy and that the product or service is the
superior solution to their current problem.
• Differentiating with competitors
• Driving customer loyalty and retention
Group Activity: (10 minutes)
• Name the top brand that comes to mind when these
generic products or services are mentioned. Why do
you think they are the top-of-mind brands?
1. Toothpaste 11. Soft drinks
2. Soap 12. Fast food restaurant
3. Coffee 13. Convenience store
4. Milk 14. Potato chips
5. Car 15. Cookie
6. Rubber shoes 16. Chocolate
7. Mall 17. Refrigerator
8. Spa 18. Television
9. Beauty salon 19. TV station
10. University or college 20. Smartphone
Fundamentals of Brand Management
Brand name must be:
• Unique
• Easy to remember
• Can describe benefits of the product or servicecan be
converted to other dialects or languages in case of
expansion
• Can describe product category
• Can describe concrete qualities
• Positive and inspiring
Group Activity: (15 minutes)
Using the previous business, answer the following:
• Does the business have a brand name?
• If so, do you think it is working? Why?
• If not, what is your strategic suggestion?

Make a brand name and slogan (optional) for your

proposed business. Defend it.
Key Takeaways:
• Business Plan
Key Takeaways:
• Value proposition and unique selling proposition
• Know Your Customers
• Market size
• Customer requirements
• Primary and secondary target market
• Demographic
• Psychographic
• Geographic
• behavioral
• Talking to Your Customers
• Interview
• FGD
• Survey
Key Takeaways:
• 7Ps of Marketing
• Product
• Place
• Price
• Promotion
• People
• Packaging
• Process
• Brand