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Unisite Subdivision, Del Pilar, City of San Fernando 2000, Pampanga, Philippines
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SENIOR HIGH SCHOOL - GRADE 12
Academic Track - Science, Technology, Engineering, and Mathematics (STEM) Strand

ENTREPRENEURSHIP (Entrep) their people flourish, stepping up, and producing

(First Semester, First Quarter Reviewer) great results with minimal supervision.
UNIT I: DEVELOPING A BUSINESS PLAN 4. THE INVESTOR
• Investors look for more opportunities for their
MODULE I: OVERVIEW OF ENTREPRENEURSHIP
business to grow.
ENTREPRENEURSHIP • They may either purchase one or two businesses
• Proactive process of developing a business venture that can potentially add value to the company, or sell
to make a profit. their established business (as a franchise) to
potential entrepreneurs.
TWELVE (12) SOCIETAL AND ECONOMIC
BENEFITS OF ENTREPRENEURSHIP 5. THE TRUE ENTREPRENEUR
1. Creates employment • True entrepreneurs, based on their experience, now
2. Amplifies economic activities aim for quality and excellence in their work.
3. Introduces innovation
FOUR (4) TYPES OF ENTREPRENEUR
4. Improves quality of life
5. Disperses economic power and equality 1. TECHNOPRENEUR
6. Controls local wealth • Entrepreneur who puts technology at the core of his
7. Reduces social conflicts or her business model.
8. Stimulates investment • Examples are Sulit.com and OLX.
9. Develops new market
2. SOCIAL ENTREPRENEUR
10. Utilizes indigenous resources
• One who take advantage of the country’s social
11. Provides alternatives for consumers
problems and turn them to profitable institutions
12. Serve as role models
with the intention of helping the disadvantaged
ENTREPRENEUR community rather than making a profit.
• Derived from the 2 French words, “ENTRE” meaning
3. INTRAPRENEUR
“between” and “PRENDRE” meaning “to take.”
• Entrepreneur in a large company or corporation
Defined as “to take in between.”
who is tasked to think, establish, and run a new big
• Unique individual who has the innate ability and
idea or project.
extraordinary dedication to establish and manage a
business, acknowledging all the risks and reaping its 4. EXTRAPRENEUR
rewards. • Entrepreneur who hoops from one company to
another to act as the innovation champion, providing
FIVE (5) LEVELS OF ENTREPRENEUR
creative and efficient solutions.
1. THE SELF-EMPLOYED
COMMON AND CORE COMPETENCIES IN
• Self-employed persons are, simply put, not
ENTREPRENEURSHIP
comfortable with the routines of a desk job.
• They do not want to conform to a fixed working NINE (9) COMMON COMPETENCIES OF A
schedule. SUCCESSFUL ENTREPRENEUR
2. THE MANAGER 1. PROACTIVE
• In this level, entrepreneurs feel the need to step up - Entrepreneurs are reactive rather than passive.
and ask some help from the people around them. - They address issues, problems, and challenges
• They delegate and hire potential employees to do before they come rather than when they already
the work. happened.
3. THE LEADER 2. AGENTS OF CHANGE
• Entrepreneurs in this level already enjoy seeing - Entrepreneurs are innovation champions.
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
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SENIOR HIGH SCHOOL - GRADE 12
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- They see opportunities in hopeless and complex leader.

situations. - To be successful leaders, they must be a source of
inspiration for their employees.
3. RISK TAKER
- They must be very humble, approachable, friendly,
- Entrepreneurs will not be successful if they do not
and also know how to listen to people’s concerns.
take risks.
- By taking risks, entrepreneurs do not just grab 2. COMMUNICATORS
opportunities left and right. - Entrepreneurs know how to use all forms of
communication to effectively share ideas and address
4. OPPORTUNITY SEEKER
certain concerns with their customers or employees.
- Entrepreneurs have a talent for recognizing an
opportunity even by using the macrolevel data only. 3. SPECIALISTS
- Entrepreneurs are experts in their chosen business.
5. SOCIABLE
- They are tactical and are very keen with details.
- Soft skills are one of the most important
- When asked about the specifics of their product or
competencies of entrepreneurs as these establish the
service, they can easily answer without heavily
relationship with the most important assets of the
relying on their people.
company – its people and its customers.
4. PROBLEM SOLVERS
6. NETWORKERS
- Entrepreneurs possess critical thinking skills and
- A networker knows they key people to connect
look at problems as challenges or puzzles that they
with.
need to solve.
- Networking can be a very intimidating task, for it
- They know how to handle issues in any area of the
takes a lot of guts to pull it off.
business, be it finance, operations, or marketing.
- Successful entrepreneurs gain trust of their valuable
network and maintain a long-lasting relationship PROS AND CONS OF
with them. ENTREPRENEURSHIP VS. EMPLOYMENT
IMPORTANT
7. DECISIVE CAREER ENTREPRENEUR EMPLOYEE
- Entrepreneurs always have a decision about their FACTORS
business. • Income • Income
- They do not settle for gray areas or unclear generated generated
solutions. passively even actively like
- They do not leave an issue unsolved without a when the on working
disposition. entrepreneur is hours only.
resting. • Income
8. BALANCED • Opportunity usually fixed
- The minds of entrepreneurs should have a balance income per month
between the analytical and the creative side. unlimited, and increases
depending on the every year
9. INNOVATIVE Income success of the depending on
- The minds of entrepreneurs are rich with big ideas business. the employer
that can add value to their existing business or could • Income only and the
become a game changer in the industry or business earned when the employee’s
where they belong. business is performance.
successful. • Income
FOUR (4) CORE COMPETENCIES OF A SUCCESSFUL earned
ENTREPRENEUR whether the
business is
1. LEADER
successful or
- Successful entrepreneurs always have the heart of a unsuccessful.
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
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SENIOR HIGH SCHOOL - GRADE 12
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• Provides jobs • Seeks for a allowable related to the

and is the owner job and is the expenses job such as
of the business one applying incurred by the food and
and conducts the for a job and business. transportation
talent selection. is interviewed expenses to
Hiring and • Fully by the claim for
firing, responsible for company’s deductions
organizational serving hiring officer. from taxable
setup, and customers, • Has the goal income.
major key making the of satisfying • Is comfortable • May be
areas business only the in doing multiple comfortable
profitable or employer or and challenging with routines
sustainable and the direct tasks and takes and minimal
providing supervisor. accountability risks and may
employee with the risks also be
satisfaction. and profits of the comfortable in
6. Comfort
• Performs all • Has routine business, does working for
level at work
necessary task and not want to be the company
variable tasks to works on confined in a box, itself.
establish and regular or and thinks
manage a start- normal hours. outside the box
up business, • Follows or sometimes
which usually policies, thinks there is no
takes most of the procedures, box.
entrepreneur’s and
time; spend memoranda CAREERS IN ENTREPRENEURSHIP
3. Daily tasks more hours on from the
work than a employer. SIX (6) MOST COMMON SMALL BUSINESSES IN
regular THE PHILIPPINES
employee and
1. HOME-BASED BUSINESS
sometimes gets
- Many small businesses can be started from home
no sleep.
• Prepares which will save you rental expenses.
policies, 2. BUY A FRANCHISE
procedures, and - Franchise is defined as an agreement between the
memoranda for
franchisee and the franchiser.
the business.
- The franchiser gives the franchisee the right to sell
• Has flexible • Has a limited
schedule and can number of the company’s product and often provides support
take unlimited vacations services like advertising and supplier relationship, in
4. Leisure number of imposed by return for a franchise fee and percent of the profit.
time and vacation days the
3. INDEPENDENT CONTRACTING
vacations (applicable only employees.
- Independent contractor is a person that provides
if the business
has stabilized goods or services to another entity and gets paid on a
already). freelance basis.
• Taxed on the • Taxed on the 4. TECHNOLOGY-BASED OR ONLINE BUSINESS
income and can gross income
- These are various kinds of business that you can
5. Taxation claim taxable and cannot
start using the internet.
income use expenses
deductions for incurred 5. BUY AN EXISTING BUSINESS
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
Unisite Subdivision, Del Pilar, City of San Fernando 2000, Pampanga, Philippines
1Q - Entrep
SENIOR HIGH SCHOOL - GRADE 12
Academic Track - Science, Technology, Engineering, and Mathematics (STEM) Strand
- You can buy an existing business to continue the
ongoing operations.
- This allows you to start out with an established
business that is ready generating income and with
existing customers.
6. START A NEW BUSINESS
- You can start a new concept or improve an existing
concept and build your business in your locality.
MODULE II: RECOGNIZING THE POTENTIAL
MARKET
FOUR (4) TYPES OF BUSINESS ACCORDING TO
OWNERSHIP
1. SOLE PROPRIETORSHIP
• Also known as the sole trader, individual
entrepreneurship or proprietorship, is a type of
enterprise that is owned and run by one person and
in which there is no legal distinction between the
owner and the business entity.
2. PARTNERSHIP
• Formal arrangement by two or more parties to
manage and operate a business and share its profits.
• Examples are Twitter, Google, Apple, and Microsoft.
3. CORPORATION
• Artificial being created by operation of law, having
the right of succession, and the powers, attributes
and properties expressly authorized by or incident to
its existence.
• Examples are SM Investments Corporation, Nestle,
Ayala Land, PLDT, Meralco, and Petron.
4. COOPERATIVE
• Duly registered association, of persons with a
common bond of interest, who have voluntarily
joined together to achieve a lawful common social or
economic end, making equitable contribution to the
capital required, and accepting a fair share of the
risks and benefits of the undertaking in accordance
with the universally accepted principles of the
cooperatives.
ENTREPRENEURIAL PROCESS
• Step by step procedure in establishing any kind of
business that an entrepreneur has to undergo.
1. OPPORTUNITY SPOTTING AND ASSESSMENT
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima
Page 4 of 13
- This is the beginning of the process and is
considered the most difficult.
- Entrepreneurs at this point take note of interesting
trends in their environment.
2. DEVELOPING A BUSINESS PLAN
- Entrepreneurs should formulate a business plan
when they have already spotted and assessed the
opportunities for a market.
- The business plan will be the core guide and
direction of the entrepreneur in calculating the
resources needed, assessing how to obtain these
resources efficiently, and running the business
sustainably.
3. DETERMINNG THE CAPITAL NEEDED
- A big idea can never be translated into reality if the
entrepreneur’s resources are limited.
- Therefore, it is mandatory in the entrepreneurial
process to calculate the resources needed to establish
the business and compare this against the
entrepreneur’s current resources.
4. RUNNING THE BUSINESS
- This is the part where the entrepreneur should use
the resources allocated for the new venture.
- The business plan prepared in step 2 should already
have been implemented.
1. OPPORTUNITY SPOTTING AND ASSESSMENT
SCANNING THE MARKETING ENVIRONMENT
- Scanning the marketing environment is the starting
point of any new venture that involves understanding
and knowing the intricacies of the macro
environment, micro environment, and internal
environment.
3S OF OPPORTUNITY SPOTTING AND
ASSESSMENT
1. S1: SEEKING THE OPPORTUNITY
• First step and is the most difficult process of all due
to the number of options that the entrepreneur will
have to choose from.
TWO (2) SOURCES OF OPPORTUNITIES
A. MACRO ENVIRONMENTAL SOURCES
FOUR (4) MACRO ENVIRONMENTAL SOURCES
Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
Unisite Subdivision, Del Pilar, City of San Fernando 2000, Pampanga, Philippines
1Q - Entrep Page 5 of 13
SENIOR HIGH SCHOOL - GRADE 12
Academic Track - Science, Technology, Engineering, and Mathematics (STEM) Strand

a. STEEPLED (socio-cultural, technological, - Entrepreneurs just have to look at their ecosystem

economic, environmental, political, legal, ethical and and they will be able to spot business opportunity
demographic forces) right away.
- This represents the general environment where the
FOUR (4) METHODS OF GENERATING IDEAS
entrepreneur can identify business opportunities and
where the future business is about to operate. 1. FOCUS GROUP DISCUSSION (FGD)
• In this method, a moderator handles a very open,
b. INDUSTRY
free flowing and in-depth discussion with a group of
- This is the source of current trend on what is
people who can provide insightful ideas about a new
happening in the industry where the future business
product or service that will fill a market need.
will belong to.
2. BRAINSTORMING
c. NEW DISCOVERY OR KNOWLEDGE
• Similar to an FGD, brainstorming is an activity that
- These are new trends that can be the core business
allows the participants to share creative ideas using
model of a new venture.
the following rules: (a) no destructive criticism or
d. FUTURISTIC OPPORTUNITIES judgement is allowed (b) wilder ideas are accepted,
- These are projected new opportunities that can (c) more ideas are preferred, and (d) improvement of
possibly affect the business while it is running. others’ ideas is allowed.
B. MICRO MARKET 3. BRAINWRITING OR INTERNET BRAINSTORMING
• This is exactly the same as brainstorming except
SIX (6) MICRO MARKET SOURCES that the channel used is not face-to-face, but in
a. CONSUMER PREFERENCES, INTERESTS AND writing or online.
PERCEPTION 4. PROBLEM INVENTORY ANALYSIS
- These are the current needs and wants of potential • This method is similar to FGD except that the
customers that should be discovered right away. participants are already given an inventory of
b. COMPETITORS product or service problems. The participants will
- Recognizing and understanding potential just identify from the list given the compelling
competitors will aid the entrepreneur to develop a problems of a potential product or service instead of
product that is unique and will surely stand out from generating the ideas from them.
competition.
STEEPLED ANALYSIS
c. UNEXPECTED OPPORTUNITIES FROM FACTOR DEFINITION EXAMPLES
CUSTOMERS • These factors - Health
- Oftentimes the most brilliant ventures come from represent a consciousness
general view of a - Education
the most unexpected opportunities.
locality’s Level
Socio-cultural
d. TALENTS, HOBBIES, SKILLS AND EXPERTISE traditions, - Attitude
factors
- The entrepreneurs’ talents, hobbies, skills or customs, beliefs, towards
expertise can be a source of opportunity norms, and imported
perceptions. goods and
e. IRRITANTS IN THE MARKETPLACE SUCH AS services
DETERRENTS, PROBLEMS, COMPLAINTS, AND • These are - Rate of
DELAYS composed of technological
- Entrepreneurs see opportunities in situations innovations of change
Technological
where there is recurring problem or sometimes when an existing - Access to
factors
there is no more hope in solving. technology or an newest
invention of a technology
f. LOCATION new one mostly
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
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SENIOR HIGH SCHOOL - GRADE 12
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on applied be ethical in • Attitude

science and running the toward
engineering business. counterfeiting
research areas. and breaking
• These factors - Unemployment patents
include income, trends - Gender
expenses, and - Labor cost distribution
resources that - Inflation - Family size
Economic • These are the
can influence the rates and structure
factors Demographic characteristics
cost of doing the - Age
factors of people in the
business and distribution
target market.
generating and life
income. expectancy
• The scan of • Weather rates
these factors • Attitude
will help the towards 2. S2: SCREENING THE OPPORTUNITY
entrepreneur “green” or • Process of cautiously selecting the best opportunity
determine if the ecological depending on the internal and external intents.
business he or products
Environmental she is entering • Recycling THREE (3) BUSINESS OPPORTUNITY ELEMENTS
or ecological into will comply
factors A. VIABILITY
with the
environmental • Whether the idea will have a reasonable chance of
standards or will success.
just be a hazard B. PROFITABILITY
to people,
• Possible return on investment and profit.
animals and
nature. C. CUSTOMER REQUIREMENT
• These factors - Tax policy • The product will meet customer needs.
are mostly like rates and
induced by incentives 3. S3: SEIZING THE OPPORTUNITY
government • Last step in the opportunity spotting and
policies and assessment. This is the “pushing through” with the
Political
administrations, chosen opportunity.
factors
which have a
strong effect in INNOVATION
the • Process of positively improving an existing product
entrepreneur’s or service.
business.
• These are - Consumer THREE (3) TYPES OF INNOVATION
government protection 1. BREAKTHROUGH INNOVATION
laws and - Employment • These innovations, which may also involve
Legal factors regulations that law
inventions, occur infrequently as these establish the
can restrict or - Health and
flat form on which future innovations in an area are
allow business safety law
activities. developed.
• These are - Ethical 2. TECHNOLOGICAL INNOVATION
factors that will advertising • These innovations occur more frequently than
Ethical factors serves as an and sales
breakthrough innovations. These are technological
entrepreneur’s practices
advancements of an existing product or service.
guide on how to
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
Unisite Subdivision, Del Pilar, City of San Fernando 2000, Pampanga, Philippines
1Q - Entrep
SENIOR HIGH SCHOOL - GRADE 12
Academic Track - Science, Technology, Engineering, and Mathematics (STEM) Strand
3. ORDINARY INNOVATION
• These innovations occur ordinarily as the name
implies. They are commonly originating from market
analysis and technology pull instead of a technology
push.
PRODUCT OR SERVICE PLANNING AND
DEVELOPMENT PROCESS
1. IDEA STAGE
- In this stage, the entrepreneur determines what are
the feasible products and/or services that will
perfectly suit the opportunity.
2. CONCEPT STAGE
- Once the acceptable product or service has already
been identified, it will go through the concept stage.
- The developed idea will undergo a consumer
acceptance test.
3. PRODUCT DEVELOPMENT STAGE
- In this stage, the entrepreneur leverages on the
information generated from the prospective
customers via the concept stage.
- Actual reactions from prospective customers are
determined.
4. TEST MARKETING STAGE
- This stage validates the work done from the first
three stages to measure success in the
commercialization of the product or service.
5. COMMERCIALIZATION OR LAUNCH STAGE
- While the product has now begun to be distributed
and sold, these may be done on a limited basis.
MODULE 3: THE MARKETING PLAN
BUSINESS PLAN
• Comprehensive paper that details the situation
analysis, objectives, strategies, and tactics, and how
to monitor and control the enterprise.
THREE (3) PURPOSES OF BUSINESS PLAN
1. Serve as a guide for tracking the company’s
progress.
2. Tool for attracting banks and private investors to
finance a company as well as encouraging potential
employees to join the team.
3. Help the owner identify potential risks and pitfalls.
VALUE PROPOSITION
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima
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• States why a customer should buy a certain product
or service.
• Thus, it is the major driver in customer purchase or
service attainment.
• Example, McDonalds has a value proposition of I’m
lovin’ it or “Love ko ‘to.”
SIX (6) WAYS ON HOW TO CREATE 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 the value of your product or service so
that customers will easily get what benefits you can
provide.
4. Adapt to the language of your market. Ensure that
your target market understands clearly what you are
trying to say and avoid putting unnecessary and
inexplicable phrases.
5. Add credibility-enhancing elements such as actual
testimonials from customers, partners, and other
stakeholders, putting specific assurance elements and
social acceptability metrics found in social media or
press materials
6. Differentiate your value proposition with your
competitors.
UNIQUE SELLING PROPOSITION
• How you will sell the product or service to your
customers.
• Addresses the customers’ wants and desires.
THREE (3) WAYS ON HOW TO CREATE AN
EFFECTIVE UNIQUE SELLING PROPOSITION
1. Identify and rank the uniqueness of the product or
service attribute
2. Be very specific
3. Keep it short and simple (KISS)
MARKETING RESEARCH
• Comprehensive process of understanding the
customer’s intricacies and the industry they revolve
in.
• Aims to scrutinize the target market, their specific
requirements, and the market size where the
business operates.
MARKET SIZE
• Simply the size of the arena where the
Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
Unisite Subdivision, Del Pilar, City of San Fernando 2000, Pampanga, Philippines
1Q - Entrep
SENIOR HIGH SCHOOL - GRADE 12
Academic Track - Science, Technology, Engineering, and Mathematics (STEM) Strand
entrepreneurs’ business will play.
• Approximation of the number of buyers and sellers
in a particular market.
THREE (3) STEPS IN STRATEGIC MARKETING
RESEARCH
1. Estimate the potential market – the approximate
number of customers that will buy the product or
avail the service and it is called MARKET SPACE OR
MARKET UNIVERSE
2. Eliminate the customers who are probably unlikely
to buy the product or avail the service
3. Estimate the market share
CUSTOMER
• Lifeblood of the business.
• People who buy the products or avail the services of
the entrepreneur.
• Their thoughts, feelings, and experiences shape the
decision of the business.
• The voice of every business that every entrepreneur
should listen to.
CUSTOMER REQUIREMENTS
• Specific features and characteristics that the
customers need from a product or service.
• These requirements can be used to formulate the
value proposition and the unique selling proposition,
as addressing the requirements would increase the
competitive edge of the business.
MARKET SEGMENTATION
• Grouping similar or homogenous customers
according to demographic, psychographic,
geographic, and behavior.
MARKET INTELLIGENCE
• Include customer profiling for correct strategies
and tactics to be implemented.
FOUR (4) CLASSIFICATION OF GROUPINGS
1. DEMOGRAPHIC OR SOCIOECONOMIC
SEGMENTATION
• Process of grouping customers according to
relevant socioeconomic variables for the business
venture.
FOUR (4) SOCIOECONOMIC VARIABLES
A. INCOME RANGE AND THE SOCIAL CLASS OF THE
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima
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CUSTOMERS
- Very important factors for the entrepreneur to
consider because these represent the purchasing
power of the market.
B. OCCUPATION
- Should also be considered not just to determine the
customer’s income, but also their daily routine where
goods and services can be properly positioned.
C. GENDER AND AGE GROUP
- Data that must be mined because the life cycle of
customers and their gender influence their buying
behavior.
D. RELIGION AND ETHNICITY
- Should be taken to account because these affect the
way they buy products or avail of services.
2. PSYCHOGRAPHIC SEGMENTATION
• Process of grouping customers according to their
perceptions, way of life, motivations, and inclinations.
• Perception is a process wherein an individual
receives external stimuli using the five senses of
hearing, touching, smelling, seeing, and tasting.
TWO (2) TYPES OF MOTIVATION
A. PHYSIOLOGICAL MOTIVATIONS
• Involve the needs of the person and they seek to
avoid pain and give pleasure.
• Examples are food, clothing, and shelter.
B. PSYCHOLOGICAL MOTIVATIONS
• Involve customer’s preference or what the
customer likes or dislikes.
CUSTOMERS’ INCLINATIONS
• Involve preferring one product over another as a
result of gaining a refreshing experience when using
the product, possibly due to the product’s unique
features or due to it giving more value than other
products.
3. GEOGRAPHIC SEGMENTATION
• Simply grouping customers according to their
location.
4. BEHAVIORAL SEGMENTATION
• Process of grouping the customers according to
their actions.
Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
Unisite Subdivision, Del Pilar, City of San Fernando 2000, Pampanga, Philippines
1Q - Entrep
SENIOR HIGH SCHOOL - GRADE 12
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THESE BEHAVIORS ARE INSTIGATED BY FOUR (4)
A. OCCASIONS
- Drastically affect the customers’ buying behavior.
B. DESIRED BENEFITS
- Efficient because the entrepreneur determines the
exact needs of the customers and offer the most
suited product or service for them.
C. LOYALTY
- The result of maintaining satisfied customer.
D. USAGE OF PRODUCTS OR AVAILMENT OF
SERVICE
- Describes to the entrepreneur how often a product
is being used or the service is being availed.
TALKING TO YOUR CUSTOMERS
FOUR (4) DIFFERENT WAYS ON HOW TO TALK TO
YOUR CUSTOMERS
1. INTERVIEW
• Face-to-face contact between the researcher or
entrepreneur and a respondent where the researcher
asks pertinent questions that will give him significant
pieces of information about the problem that he will
solve.
• Advantages are credible way of getting information
and helpful even when the business has already
started.
• Disadvantage is often expensive.
TWO (2) TYPES OF INTERVIEW
A. UNSTRUCTURED INTERVIEW
• Informal type of interview and does not follow a
specific set of questions.
B. STRUCTURED INTERVIEW
• Employs a specific set of questions and produces
quantitative data.
• Prearranged questionnaire with specific questions
usually answerable by yes or no or closed-ended,
forced ranking, multiple choice, or choose-the-best
will be answered by the respondents.
2. FOCUS GROUP DISCUSSION (FGD)
• Commonly used by market researchers to capture
qualitative results from target customers.
• Process of mining customer and noncustomer
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima
Page 9 of 13
experience and insights about a specific product or
service.
• Led by a moderator.
THREE (3) ADVANTAGES:
a. The researcher can get combined insights from the
participants.
b. The participants are more spontaneous and
enthusiastic because of the interaction with co-
participants, thereby sharing more insights to the
researcher.
c. It can be observed by various spectators.
THREE (3) DISADVANTAGES:
a. It obtains only qualitative data.
b. Examination of the focus group session is difficult
and requires more time.
c. There are potentially biased answers from the
participants because they will encounter peer
pressure.
3. OBSERVATION
• One of the preferred and practical methods of
generating ideas because the researcher documents
the behavioral patterns of people or of objects or
events without necessarily requiring them to
participate in the research process.
• Reliable because it allows the researcher to see the
real and actual behavior of customers rather than
hearing what they need to say.
• The key to observation is that the researcher must
be keen and accurate on what he or she really wants
to observe – he or she must have a very clear
objective.
TWO (2) TYPES OF OBSERVATION
A. HUMAN OBSERVER
• Records information as it occurs or as it happens
using his or her five senses.
TWO (2) EXAMPLES OF HUMAN OBSERVATION
a. CUSTOMER PURCHASE PATTERNS
- This human observation technique uses the
researcher to understand the buying behavior of the
customers such as determining their pain points,
buying patterns like how many times and how often
do they buy or their inclinations toward a product or
service, location, price, or promotion.
Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
Unisite Subdivision, Del Pilar, City of San Fernando 2000, Pampanga, Philippines
1Q - Entrep
SENIOR HIGH SCHOOL - GRADE 12
Academic Track - Science, Technology, Engineering, and Mathematics (STEM) Strand
b. MYSTERY SHOPPING
- Common practice of service business today where
the researcher pretends he or she is a customer of his
or her own business or the competitor’s.
- This is a test to determine the quality of the
customer service or if the service provider is doing
the right job.
B. MACHINE OBSERVER
• Employs an equipment.
FIVE (5) EXAMPLES OF MACHINE OBSERVATION
a. VIDEO CAMERAS OR CLOSED-CIRCUIT
TELEVISION (CCTV)
- These are positioned within the business premises.
b. TRAFFIC COUNTERS
- Very common machine observers used by
researchers to determine foot traffic or vehicular
traffic in a particular location.
c. WEB ANALYTICS
- Online tool that tracks the performance of a Web
site as to the number of its visitors, the contents they
usually access, and other information.
d. BARCODE SCANNERS
- These machines help researchers understand the
purchase behavior of the customer by reading the
product codes and generate relevant sales
information.
e. GPS TECHNOLOGY
- Allows tracking of vehicles and pedestrians exposed
to out-of-home advertisements.
FOUR (4) CONDITIONS WHERE OBSERVATION
ONLY BECOMES A RELEVANT RESEARCH TOOL
A. If the person, object, or event is indeed observable.
B. If the person does the activity regularly or the
event happens on a regular basis.
C. If doing an interview or FGD is becoming intrusive
of the privacy of the person.
D. If the subject of observation does not take too long
to produce relevant information.
4. SURVEY
• Process of getting answers from a sample of
respondents derived from a particular population.
• Some of the traditional ways to conduct a survey
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima
Page 10 of 13
are via telephone, face-to-face interaction or snail
mail, while online is the more efficient which is
through e-mails, web sites or social media sites.
• Questionnaires can be distributed and answered
verbally, by writing, or through the internet.
IN PREPARATION FOR THE SURVEY, THE
RESEARCHER MUST IDENTIFY THE FOLLOWING
THREE (3)
A. SAMPLING TECHNIQUES
SAMPLE
• Percentage of a specific population carefully chosen
by the researcher to generally represent the whole
population.
CENSUS
• Whole population.
TWO (2) TYPES OF SAMPLING
a. PROBABILITY SAMPLING
• Technique wherein samples are given equitable
chances or nonzero chances of being selected from a
population.
• The researcher needs to apply randomization,
wherein he or she need to assure that every sample
has an equal representation for the selection process
to be unbiased.
• Advantage is that sample error can be quantified.
• Sampling error is a range of inaccuracy to which a
sample might vary from the particular population.
b. NON-PROBABILITY SAMPLING
• Does not give the samples equal chances of being
selected, because samples are instead selected
according to their accessibility or personal choice of
the researcher.
B. SAMPLE SIZE
• The researcher must be able to calculate first the
appropriate sample size in conducting the survey.
C. QUESTIONNAIRE BLUEPRINT
SIX (6) TIPS ON HOW TO CREATE A BLUEPRINT
FOR THE QUESTIONNAIRE
a. Be specific and direct.
b. Be flexible with the respondents’ convenient way
of answering the questionnaires.
c. Ensure that each question is necessary and not
Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
Unisite Subdivision, Del Pilar, City of San Fernando 2000, Pampanga, Philippines
1Q - Entrep
SENIOR HIGH SCHOOL - GRADE 12
Academic Track - Science, Technology, Engineering, and Mathematics (STEM) Strand
repetitive.
d. Always put yourself in the shoes of your
respondents.
e. Make sure that questions are arranged in a
coherent order that will lead to the answers required.
f. The questionnaire should look professional, be
divided into strategic parts, and be properly
numbered.
THE MARKETING MIX: THE 7PS OF MARKETING
MARKETING MIX
• Widely accepted strategic marketing tool that
combines the original 4Ps which are product, place,
price, and promotion with the additional 3Ps which
are people, packaging, and process in formulating
marketing tactics for a product or service.
ENTREPRENEUR MUST USE THE 7PS MODEL TO
DO THE FOLLOWING FOUR (4)
1. Conduct a situation analysis
2. Set objectives
3. Conduct a strength, weakness, opportunity, and
threat or SWOT or competitive analysis
4. Come up with marketing strategies and tactics
THE 7PS OF MARKETING
1. PRODUCT
• 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 (3) LEVEL CONCEPT OF PRODUCT OR
SERVICE
1. LEVEL 1: CORE BENEFITS OF THE PRODUCT OR
SERVICE
- The core benefit of a product or service are the
major factors why a customer buys a product or
avails of a service.
- Example, a customer buys coffee because he or she
wants to feel energetic and alert the whole day.
2. LEVEL 2: PHYSICAL CHARACTERISTICS OF THE
PRODUCT OR SERVICE
- Once the core benefit has been satisfied and options
are available to the customers, the tendency is to look
for the second layer of selection, i.e., which has a
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima
Page 11 of 13
better packaging for products or a better physical
evidence or customer experience for services.
- In the previous example, the customer can choose a
coffee with a more appealing packaging or a more
aromatic smell.
3. LEVEL 3: AUGMENTED BENEFITS OF A
PRODUCT OR SERVICE
- Augmented benefits are only additional benefits; a
customer will still get the core benefits of a product
or service even without the augmented benefits.
- Example in the previous example, the customer can
choose a coffee product that comes with a loyalty
card, so that when he or she accumulates, say, 10
coffee drinks, he or she will be able to get a free
coffee drink.
2. PLACE
• Refers to a location or the medium of transaction.
• Strategic location depends on the nature of the
business and the primary target market.
FIVE (5) THINGS ENTREPRENEUR MUST
RESEARCH IN A PHYSICAL LOCATION
A. Area’s population
B. Traffic
C. People’s common path
D. Buying behavior
E. Preference for the location like Wi-Fi access and
spacious area for parking
3. PRICE
• Peso value that the entrepreneur assigns to a
certain product or service after considering its costs,
competition, objectives, positioning, and target
market.
• The only P in the 7Ps that generates revenue for the
business.
TEN (10) MOST COMMON PRICING STRATEGIES
A. BUNDLING
• Refers to two or more products or services in one
reduced price.
• Examples is 3-in-1 coffee for ₱8.00, manicure and
pedicure for ₱150.
B. PENETRATION PRICING
• Refers to setting low prices to increase market
share, but the entrepreneur will eventually increase
Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
Unisite Subdivision, Del Pilar, City of San Fernando 2000, Pampanga, Philippines
1Q - Entrep
SENIOR HIGH SCHOOL - GRADE 12
Academic Track - Science, Technology, Engineering, and Mathematics (STEM) Strand
the price once the desired market share is achieved.
• Example, a mobile app-based transportation service
offering reduced booking fee of ₱15 as its
introductory price.
C. SKIMMING
• Opposite of penetration pricing where prices are
initially high and then they are lowered to offer the
product or service to a wider market.
• Example, a real estate company offering top-tier
projects is now offering low-cost housing of same
quality to serve the middle market segment.
D. COMPETITIVE PRICING
• Refers to benchmarking prices with the
competitors.
• Example, milk tea prices are competitively priced.
E. PRODUCT LINE PRICING
• Refers to pricing different products or services
within a parallel product array using varying price
points.
• Example, LED TV is more expensive than the LCD
TV even if under the same brand.
F. PSYCHOLOGICAL PRICING
• Considers the psychology and positioning of price in
the market.
• Examples, price of haircut service is at ₱199
because consumers tend to think that odd prices are
considerably lower than what they are. In this
example, they tend to round off the price to ₱100
instead of ₱200.
G. PREMIUM PRICING
• Refers to setting a very high price to reflect elitism
and superiority.
• Examples are the prices of signature clothes, bags,
and perfumes.
H. OPTIONAL PRICING
• Refers to adding an extra product or service on top
of the original to generate more revenue.
• Examples are the meals on top of the airfare.
I. COST-BASED PRICING
• The basis of markup is the cost of sales.
• Example, the entrepreneur will compute the cost of
coconut juice by adding the cost of the coconut juice
which is ₱10 and the plastic container which is ₱4. He
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima
Page 12 of 13
or she can set the price at ₱20 to earn ₱6 per coconut
juice.
J. COST PLUS PRICING
• The markup is based on a certain percentage of
cost.
• Example, the entrepreneur wants to set a 50%
markup on the coconut juice cost which is ₱14 x 50%
= ₱7. The new price is ₱14 + ₱7 = ₱21.
TWO (2) CLASSIFICATIONS OF COSTS
a. VARIABLE COSTS OR CONTROLLABLE COSTS
• These costs are directly proportional to the number
of products manufactured or to the number of
services performed.
b. FIXED COSTS OR UNCONTROLLABLE COSTS
• These are costs not directly proportional to the
manufacturing of a product or to the performance of
the service.
4. PROMOTION
• Involves presenting the products or services to the
public and how these can address the public’s needs,
wants, problems, or desires.
• The primary target market should be identified
because it will become the main audience.
• Main goal is to gain attention.
• A strong integrated marketing communication plan
or IMC should be devised to deliver the compelling
messages effectively.
FOUR (4) PROMOTIONAL TOOLS
A. ADVERTISING
• Type of communication that influences the behavior
of a customer to choose the product or service of the
entrepreneur over the competitors.
THREE (3) OBJECTIVES OF ADVERTISING
a. Informing, educating, and familiarizing the public
with the product and service offerings.
b. Building a trustworthy image.
c. Increasing sales.
SIX (6) WAYS TO ADVERTISE
a. Television, in regular channels, and cable TV
b. Radio, in AM and FM radio
c. Internet, in emails, web sites, blogs, social media,
search engines, and podcasts
Professor: Ma’am Renee Joy P. Reyes
 UNIVERSITY of the ASSUMPTION
Unisite Subdivision, Del Pilar, City of San Fernando 2000, Pampanga, Philippines
1Q - Entrep Page 13 of 13
SENIOR HIGH SCHOOL - GRADE 12
Academic Track - Science, Technology, Engineering, and Mathematics (STEM) Strand

d. Mobile phones , in text messages, mobile 5. PEOPLE

applications, and mobile internet
e. Print, in newspapers, magazines, flyers, directories,
signages, and posters
f. Out-of-home, in billboards, buses, bus stops, trains,
train stations, taxis, and street advertisement
B. SELLING
• The act of trading a product or service for a price or
a fee.
C. SALES PROMOTION
• Short-term promotional gimmicks wherein
practical incentives and appealing activities are
incorporated to entice the customer to buy the
product or avail of the service.
ELEVEN (11) COMMON SALES PROMOTIONS IN
PHILIPPINES
a. Sales discounts or discount coupons
b. Raffles
c. Contest and games
d. Promo items
e. Product or service bundles
f. Trade fairs or exhibits like wedding expo
g. Sample distributions or free taste or free trials
h. Premiums like free food for fast food meals
i. Point-of-purchase promotions like display stands in
grocery stores
j. Advertising specialties like pens, notebooks,
umbrellas, bags, and calendars
k. Rewards like reward card
D. PUBLIC RELATIONS
• Image building initiatives of the entrepreneur to
make the name of the business reputable to
stakeholders, such as the target customers,
government agencies, business partners, media, and
the public.
EXAMPLES OF PUBLIC RELATIONS STRATEGIES
a. Press conferences
b. Launching events
c. Strong media relations through press kit
d. Social responsibility events like charitable or
community events
e. Lobbying like good relationships with government
officials
f. Web public relations like blogs, social media,
emails, and word of mouth
Created by: Jopar Jose C. Ramos | STEM 12 - Our Lady of Fatima
• One of the three additional Ps in the marketing mix.
• In today’s marketing arena, people play a vital role
in servicing customers even though the entrepreneur
sells only physical goods.
6. PACKAGING
• How the product or service is presented to
customers.
• Overall identification or look and feel of the product
or service.
• The silent salesman.
7. PROCESS
• Last addition in the marketing mix as marketers
began to realize the importance of the internal and
external operations of the business to serve
customers better.
• Step-by-step procedure or activity workflow that
the entrepreneur or employees follow to effectively
and efficiently serve customers.
FUNDAMENTALS OF BRAND MANAGEMENT
1. BRAND
• Refers to the identity of a company, of a product, of
a service or of an entrepreneur himself or herself.
• Symbol of promise or assurance from the
entrepreneur that what it purports to the customers
will happen.
2. BRANDING
• Process of integrating the strategies formed from
the marketing mix to give an identity to the product
or service.
THREE (3) GOALS OF BRANDING
A. Establishing to target customers that the business
is reliable and trustworthy.
B. Differentiating from competitors.
C. Driving customer loyalty and retention.
BRAND MANAGEMENT
• Supervision of the tangible and intangible elements
of a brand.
Professor: Ma’am Renee Joy P. Reyes