Entrep 1ST Quarter

Sibugay Technical Institute Inc.
FIRST QUARTER
Learner’s Module in Entrepreneurship
MODULE 1 – WEEK 1
“If an opportunity doesn’t knock, create a door”

- Milton Berle
Lesson Title: Business
Learning Objectives:
At the end of this module, the students can;
1. Explain what business all about is.
2. Discuss how a business works.
3. Enumerate the different types of business and give an examples
4. Identify the different structures of the business
MODULE CONTENT:
What is a business?
Business generally refers to organizations that seek profits by providing goods or services in
exchange for payment. However, businesses don't need to turn a profit to be considered a
business. The pursuit of profit, in and of itself, makes an organization a business.
A business is any entity that seeks to profit from an activity. Business is a broad term, but these
profit-seeking activities generally include providing some kind of good or service that people
want or need. Businesses may experience a loss, but that doesn't stop them from being a
business. All that's important—from the standpoint of defining a business—is that the entity
seeks to profit from what it does.
NOTE TO SELF: When an entity provides goods or services without seeking profit,
it isn't a business. These entities include nonprofits and other charitable organizations,
as well as government programs.
An entity doesn't need to have a storefront or website to be a business. A person selling flowers
by a roadside is doing business, as they are offering a product in exchange for a profit. A person
who offers their creative skills on a freelance basis could be a business within themselves,
otherwise known as a self-employed worker.
Learner's Module in Entrepreneurship

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How Does a Business Work?
Before starting a business, make sure you have a clear understanding of what constitutes a
business, as well as any business-related activities. That includes knowing the federal, state, and
local laws that pertain to your business. This knowledge will help you avoid any penalties and
fines, which could cripple or end your business soon after it starts. This information will also
help you develop a strong business plan for a successful start in the marketplace.
A person who operates a business is described as self-employed, a business owner, a

contractor, or sometimes an entrepreneur. However, the terms "business owner" and
"entrepreneur" are not universally considered to be synonymous.
In the Philippines, most businesses register with the government in some capacity.
Individuals who conduct business under their own name may not need to register their business
with the government, but they may miss out on tax deductions and credits, such as the small
business deduction, that individuals cannot claim
Some freelancers, hobbyists, and people with side gigs may be surprised to learn they are
actually engaged in business and need to declare their business income, according to the way
their government defines a business. Organizations such as the Internal Revenue Service offer a
sort of profit test to determine whether a person or corporation is operating a claimed business
Note to Self: Any activities performed for profit or in expectation of a profit are
considered a business activity. This includes selling items at a flea market,
Types of Businesses
There are many types of business models, and businesses commonly operate in more than one
area simultaneously. However, for the sake of generalizing the categories of business, the three
main types are:
 Service - These are business that offers service to the customer. Examples are
restaurants, barbershops, tailoring shop and more
 Manufacturing – These are businesses that convert raw materials into finished goods.
Examples such as factories
 Commerce – These are businesses engage in the buying and selling of goods such as
merchandising, retailing store, wholesaling and more
Beyond the type of product or service provided, businesses can also be classified by their size
and legal structure.

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Here are the most common business structures.
 Sole proprietorships: These are unincorporated businesses owned and operated by a

single person.
 Partnerships: This occurs when two or more people share in the funding, labor,
ownership, profits, and losses that come with a business venture.
 Corporations: These businesses are owned by shareholders and can become massive
enterprises.
Key Takeaways
 A business is an entity that seek profit from a product or service.

 An entity that seeks to profit is a business, whether or not it succeeds in
obtaining profits.
 The three main categories of business are service, manufacturing, and retail.
 Businesses can be individuals with side hustles or massive corporations with
hundreds of employees.
- End of Module 1 -
SELF – ASSESSMENT 1:

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Direction: Put a checkmark ( ̷ ) on the space provided before the
number if the given below is considered a business and an ( x ) mark if
not. 2 points each.
_____ 1. Sari – Sari Store ____11. GMA Network
_____ 2. Fast – Food Chain ____12. Municipal Hall
_____ 3. Sibugay Technical Institue Inc. ____13. Budgetwise
_____ 4. Burea of Internal Revenue ____14. Hardware
______5. Mercury Drug Store ____15. Bank
______6. ABS – CBN ____16. Western Union
______7. Lingkod Kapamilya Foundation ____17. Penshoppe
______ 8. Church ____18. Saver’s Smart
______ 9. Coca – Cola Company ____19. El Ronie’s
______ 10. San Miguel Corporation ____20. Dental Clinic
SELF – ASSESSMENT 2:

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Direction: Identify what type of business are given below. Your answer must only be
service, manufacturing or commerce. Write your answer on the space provided
before each number.
_______________1. Pawnshop _______________ 11. Cargo
_______________2. Food Cart business _______________ 12. Grocery Store
_______________3. ZAMSURECO _______________ 13. EMCOR
_______________ 4. Laundry Shop _______________ 14. Department Store
_______________ 5. Banco De Oro _______________ 15. Pharmacy
_______________ 6. Top Star
_______________ 7. Mc Donald
_______________8. Hospitals
_______________ 9. Law Firm
_______________ 10. Insurance Company

FIRST QUARTER

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MODULE 2 – WEEK 2
“The secret of getting ahead is getting started”

- Mark Twain
Lesson Title: Introduction to Entrepreneurship

1. Understand and explain entrepreneurship
2. Discuss how entrepreneurship relates to business
3. Explain who is an entrepreneur
4. Understand how an entrepreneur helps the world to be a better place
MODULE CONTENT:
What is entrepreneurship?
Entrepreneurship is the act of creating a business or
businesses while building and scaling it to generate a
profit.
But as a basic entrepreneurship definition, that one hit
is a bit limiting. The more modern entrepreneurship
definition is also about transforming the world by
solving big problems. Like bringing about social
change or creating an innovative product that
challenges the status quo of how we live our lives on a daily basis.
What the entrepreneurship definition doesn’t tell you is that entrepreneurship is what people do
to take their career and dreams into their hands and lead it in the direction they want.
It’s about building a life on your own terms. No bosses. No restricting schedules. And no one
holding you back. Entrepreneurs are able to take the first step into making the world a better
place – for everyone in it including themselves.
Who is an Entrepreneur?

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An entrepreneur is a person who sets up a business with the aim to make profit. This
entrepreneur can be a person who sets up their first online store on the side or a freelancer just
starting out.
The reason why they’re considered entrepreneurs, though some disagree, is because where you
start isn’t necessarily where you’ll end up.
An entrepreneur is someone who starts a side hustle that can eventually create a full-time,
sustainable business with employees. Same with the freelancer. If your entrepreneurial mindset
is focused on creating a profitable business, you fit the entrepreneur definition.
But the entrepreneur meaning involves much more than being a business or job creator.
Entrepreneurs are some of the world’s most powerful transformers. From Elon Musk sending
people to Mars to Bill Gates and Steve Jobs making computers part of every household,
entrepreneurs imagine the world differently.
And the entrepreneur definition rarely ever talks about the
enormous impact these thought leaders have on the world.
Entrepreneurs see possibilities and solutions where the
average person only sees the annoyances and problems.
Understanding what an entrepreneur is can help more people
recognize the value they can – and already do – contribute to
the world.
Key Differences between Businessman and Entrepreneur

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The following are the differences between businessman and entrepreneur;
1. A person who brings his unique idea to run a startup company is known as an
entrepreneur. A businessman is a person who starts a business on an old concept or idea.
2. A businessman makes his place in the market with his efforts and dedication, whereas an
entrepreneur creates the market for his own business.
3. The businessman is a market player while Entrepreneur is a market leader because he is
the first to start such a kind of enterprise.
4. The nature of a businessman is calculative, but an entrepreneur is intuitive.
5. As the businessman follows the footsteps of other businessmen, the possibility of failure
is very less which is just opposite in the case of the entrepreneur.
6. A businessman uses traditional methods to run the business. Conversely, an entrepreneur
applies unconventional methods for the same.
7. A businessman is oriented towards profit, however, an entrepreneur is a people focused
in essence, he gives more importance to its employees, customers, and the public.
8. The businessman faces extreme competition because it is very difficult to gain a
competitive position in an already existing market, which is not in the case of an
entrepreneur.
- End of Module 2 -

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Direction: Given below are the pictures of some famous successful entrepreneurs globally.
Identify who they are and write their contribution on the entrepreneurial world.
1. Entrepreneurs Name: __________________________
Contribution: _________________________________
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2. Entrepreneur’s Name: __________________________

Contribution: _________________________________
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3. Entrepreneur’s Name: ________________________

Contribution: ________________________________
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4. Entrepreneur’s name: _______________________________

Contribution: _____________________________________
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_______________________________________________
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Contribution: _________________________________
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Contribution: _________________________________
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Entrepreneur’s Name: __________________________

Contribution: _________________________________
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7.

Contribution: _________________________________

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____________________________________________
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Contribution: _________________________________
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Contribution: _________________________________
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ASSESSMENT 2:
Direction: Given below are the different logos of popular businesses in
the Philippines. Identify the name of the company and the name of
the entrepreneur behind the success of the business.

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1. 2.
Company Name: _______________________ Company Name: _____________________

Company Owner: _______________________ Company Owner: _____________________
3. 4.

5. 6.

7. 8.

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9. 10.

11. 12.


FIRST QUARTER
MODULE 3 – WEEK 3

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“Never start a business just to make money, instead start a business to make a difference”
- Richard Branson
Lesson Title: Personal Evaluation
1. Define success.
2. Understand the traits, skills, and attitudes necessary to be a successful entrepreneur.
3. Identify personal strengths and weaknesses matching the profiles of successful small business
owners.
MODULE CONTENT:
What Does Success Mean?
If you’re struggling to define what a successful life means, I have two pieces of good news for
you.
1. It’s never too late to start over.

2. You get to write your own definition of success.
Many of us chase career titles, money, or social status — and yet we don’t feel
successful when we get those things.
That’s because you can only measure success in your life when you define what drives
your happiness and helps you find purpose.
What is success to you?
Success is something that you have to define for yourself, and no one can do it for you.
Success could mean a sense of giving back to the world and making a difference. It could mean
a sense of accomplishment and career progression.

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It could mean being able to do the things you love. It could mean being able to provide
the best possible upbringing for your children.
Success has no deadline.
In fact, according to the Forbes Top 100 list, on average, the people who found the world’s
biggest companies don’t start until age 35. Out of 539 founders, the average age of starting their
company was 40. Many of the world’s most successful people don’t even start pursuing their
dreams until their 50s or 60s.
Success doesn’t mean by a certain age, at a certain time, or by a certain deadline. It isn’t about
any other person’s measures or metrics except your own.
TRAITS THAT EVERY ENTREPRENEUR SHOULD HAVE TO BE SUCCESSFUL
Starting your own business is a big step. You want your passion to be recognized and
appreciated by people who share similar interests. Or, maybe they didn’t know they needed
something until you introduced it to them! Yes, the process is intimidating, but being an
entrepreneur also means you are the writer of your own success story. While you may not know
where to start, remember that even the most successful entrepreneurs were in your shoes at one
point in time. How did they do it?
These are the top 15 traits that every entrepreneur should have to be successful:
1. Be Confident
Without confidence, your goals are nearly impossible to

meet. Have a vision for your business, both short-term and
long-term, and have the gusto to accomplish them. Be
realistic, but passionate about overcoming obstacles. Take
every opportunity to promote your vision and make others
believe in it, as well. If you believe in yourself, then your
team will believe in you, too. It took a lot of guts to open
your business, so don’t let the energy fizz out.
2. Be Flexible
Always maintain a sense of flexibility with plans and
ideas. If an idea isn’t working, toss it and try
something new. A good entrepreneur explores all
options and isn’t stubborn to change. Keep your
schedule flexible as well. Your time is valuable, and

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no one needs round-the-clock access. But, be willing to put in some unconventional hours to get
the job done.
3. Be Credible
Take ownership of what you do. Show your audience and competitors what you got. Your
passion for your company should shine through in everything you do. Use it to cultivate your
reputation in the industry so customers know and trust your company.
4. Be Humble
Assume some blame if things go wrong and share the credit when
things go right. Being an entrepreneur means asking for help from time to
time. Don’t forget to commend the people who come to your side when
you’re in need. Don’t try to take on too many responsibilities; instead,
recognize your needs and weaknesses and build a team that fills those
gaps.
5. Be Focused and Organized
Write and follow a business plan, update your calendar, and
create a clutter-free work space. Eliminate unnecessary
distractions during your work time so you can devote your
attention to setting and meeting goals. Be sure not to cram
too much into your day, however. Pay attention to the most
important things at the time and get them done. That way,
you can stay on track with your work.
6. Be Financially Responsible
Know exactly how much money is coming in and from
where, and how much is going out and to whom. Avoid a
financial surprise that could quickly tear your startup
apart. Maintain organized records and customer files to
help your business run smoothly. After all, one of the
biggest threats to an entrepreneur is letting bills and
loans get out of hand.
7. Be Decisive
Once you have a plan, make it happen! Don’t second guess
yourself, or wait for “the right time”. The only strategy worse than a
failed strategy is the successful strategy you never executed.
8. Be Tenacious
You will encounter more than a few “No’s” in your pursuit of a
“Yes!” Don’t give up. Follow up regularly with your contacts to

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keep their attention. You never know when a customer’s needs will change, or when a contact
of theirs is looking for exactly what you offer.
9. Be Tech-Savvy
To an entrepreneur, technology is one of the most valuable tools. Stay on top
of available technology, both in general and in your specific industry.
Technology can save you time and money in performing essential business
functions, help you stay organized, and pave the way for new solutions your
company can provide.
10. Be an Expert in Your Industry
Know everything there is to know about upcoming trends, popular
competitors, and product or service developments that can help you gain an
edge. Subscribe to industry magazines and white papers to keep up with
current events. Attend as many networking and training events as you can.
In addition to teaching you more about the industry, going to these events
allows you to network and get your name out there.
11. Be an Advocate
Be the consummate salesperson to prospective clients. Ask questions and pay
careful attention to the answers. Show customers how your product or service
can benefit them rather than rattling off a list of features. Make sure you play
up your company’s advantage over competitors, especially if your price
points differ. (Hint: don’t compete on price if you can, but if your price is
organically lower than your competition, then don’t be afraid to say so.)
Finally, don’t be afraid to ask for the sale!
12. Be Attentive
Listen to every stakeholder and ask for input. Others may have ideas or
concerns that you haven’t yet considered, and your customers will tell you
exactly what they want. You have the right to make final decisions, but if
you can take their feedback into consideration you will build a loyal
customer base and a committed team.
13. Be Positive
Always be optimistic, even when you don’t feel it. If your
audience sees that you believe in what you are doing, they will
have more confidence in your ability to do it. Maintain a
professional demeanor with regard to your competition. It is
perfectly acceptable to highlight your competitive advantage, but
it is never acceptable to badmouth your competitors. Remember:
the entrepreneur you’re up against is in the same boat as you.

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14. Be Involved
Building community support is essential to driving future success, so
demonstrate a willingness to give back. Participate in or sponsor
local events and institutions, stay on top of local politics, and give
your neighbors the chance to know and respect you as a
community figure and entrepreneur.
15. Be Practical
Finally, respect your passions outside of your business
venture. It can be tempting to throw yourself completely
into building your startup, but if you don’t take “you
time”, you will eventually burn out. Make a conscious
effort to step away from the business. Or, better yet, set
aside regular periods of work-free time. Read a book,
hike a trail, or spend time with your family to recharge
and regain the focus you need to keep going.
No entrepreneur succeeds in every business venture. Every successful entrepreneur fails at least
once, if not twice. How entrepreneurs learn from and utilize their failures, however, is what
matters, because in entrepreneurship, attitude is everything.
Here are five key attitudes every entrepreneur

must conquer in order to run a prosperous
business venture:
PASSION
1.
Entrepreneurs should be passionate about their ideas, goals
and, of course, their companies. This passion is what drives
them to do what they do .Some entrepreneurs love the
adventure and excitement of creating something new, and
once it is established they lose interest and move on to
something else. Other entrepreneurs feel passionately about
the product they are constructing or the sense of accomplishment they feel because they
know they are helping other people, helping animals or helping the planet. Whatever drives
an individual to try to succeed is where his/her passion lies, and that passion is integral to
entrepreneurial life.

2. BRAVERY

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Entrepreneurs, like everyone else, feel fear. They are fearful that they won’t succeed or
fearful a well-conceived idea cannot be executed. They do not, however, let these fears of
failure define them. They are brave. They learn from failure. They utilize their fear of
failing to push themselves to work harder and to strive to correct the mistakes that may
have caused them to fail. Many entrepreneurs need multiple attempts to create a successful
company. It is bravery that drives them to pursue success.

3. FLEXIBILITY
Entrepreneurs experience setbacks. There are hurdles to overcome on any journey. Not
everyone handles change or disappointment well. However, entrepreneurs must possess
flexible mindsets so they can alter a course that seems to be headed toward failure. Flexible
entrepreneurs should be aware that they may have to modify the route toward their
established goal, or even perhaps tweak that established goal, in order to reach it
successfully.

4. STRONG WORK ETHIC
It is not easy to start from the ground up and become a successful business owner. Many
hours of hard work, frustration, creativity and supervision are poured into a new venture. If
you are not willing to get up and work hard every day, probably seven days a week, then
how can you expect success? No successful business is created quickly, easily or without
strife. Entrepreneurs do not work a standard 9-5 day, nor do they log 40-hour work weeks.
They are always working—establishing new ideas, creating new products, designing new
processes, hiring smart and talented people. Entrepreneurs motivate themselves and
continuallylookforward.

5. INTEGRITY
Entrepreneurs must be able to show others they are truthful and honest. Regardless of the
type of business they hope to establish, colleagues, vendors, customers and investors must
trust them. There is no way around this—entrepreneurs must be trusted, and trust must be
earned. The best business idea in the world will likely fail if an untrustworthy person is at
the helm. Suppliers need to know that payments for goods they have shipped will arrive on
time. Customers need to know that whatever product or service they have ordered will be
delivered as promised. Colleagues need to know that they are a valued part of the
company’s success. Investors need to know that the company has to potential to grow.

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Understanding Entrepreneurial Skills
Entrepreneurs play a key role in any economy, using the skills
and initiative necessary to anticipate needs and bringing good
new ideas to market. Entrepreneurship that proves to be
successful in taking on the risks of creating a startup is
rewarded with profits, fame, and continued growth
opportunities. Entrepreneurship that fails results in losses and
less prevalence in the markets for those involved.
While the prospect of becoming your own boss and raking in a

fortune is alluring to entrepreneurial dreamers, the possible
downside to hanging one’s own shingle is vast. Income isn’t
guaranteed, employer-sponsored benefits go by the wayside,
and when your business loses money, your personal assets can
take a hit; not just a corporation’s bottom line. But adhering to a few tried and true principles
can go a long way in diffusing risk. The following are a few characteristics required to be a
successful entrepreneur.
1. Communication
Every entrepreneur needs to be an effective communicator. Whether a person is a solo

entrepreneur or runs a Fortune 500 company, they need to understand how to communicate
effectively to all stakeholders and potential stakeholders that touch the business.
It is imperative for an entrepreneur to be able to communicate with employees, investors,

customers, creditors, peers, and mentors. If an entrepreneur cannot communicate the value of
their company, it’s unlikely the company will be successful.
They also need to master all forms of communication, including one-on-one and in-person
conversations, group conversations, written communication, and email or online messages.
2. Sales
The soft skill of sales goes hand-in-hand with the communication necessary to be successful. As
an entrepreneur, this person needs to be able to sell anything and everything. An entrepreneur
needs to sell the business idea to potential investors, the product or service to customers, and
themselves to employees.
If an entrepreneur is able to communicate effectively, they are better equipped to sell their ideas
and physical products.

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In the beginning, it's natural for entrepreneurs to be the first salespeople at their respective
companies. Those sales skills are necessary to demonstrate value for all stakeholders inside and
outside the company.
3. Focus
The path to successful entrepreneurship is riddled with ups and downs. There are the highs of
successes and the despairs of setbacks. A successful entrepreneur needs to be able to focus so
they can stay the course when the going gets tough.
Note: One of the main risks an entrepreneur faces is the risk of emotional instability
This skill can also be thought of as thinking with the end in mind. No matter what struggles an
entrepreneur goes through, a successful entrepreneur has the focus necessary to keep an
unwavering eye on the end goal and can push himself to achieve it.
4. Ability to Learn
The ability to learn is one of the most important skills to have in life, let alone in
entrepreneurship. If someone is building a business, however, the ability to learn is required for
success.
The ups and downs an entrepreneur goes through are unavoidable. An entrepreneur needs a
high ability to learn—and a desire to learn. If a person is able to learn in any situation, even
failure, they have the skills necessary to become a successful entrepreneur. Failure can help
expand one's knowledge and understanding of business.
5. Business Strategy
While a successful entrepreneur has, by definition, built a successful company, the skill of
business strategy is actually the fifth most important skill that an entrepreneur needs. Often,
entrepreneurs achieve success in their businesses through their own sheer strength of will.
By employing effective communication skills, sales skills, a deep focus, and a high ability to
learn, an entrepreneur can actually learn a business strategy on the fly. When structuring and
growing a business, however, it's important that the structure and growth strategy is based on
sound business sense and skills. A successful entrepreneur needs to have a solid strategy to take
their business from good to great.
Entrepreneurial Education and Career Outlook

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Some of the skills needed to be a successful entrepreneur are likely to be innate or natural.
Others can be hones through training and education in business and management. A masters in
business administration (MBA) is a common route. MBA coursework involves a broad
spectrum of business-related topics including accounting, statistics, economics,
communications, management, and entrepreneurship. MBA programs not only prepare students
to work for financial institutions, but they also prepare them for management positions or as
founders of startup companies.
If you think you have what it takes to be a successful entrepreneur, keep in mind that even great
ideas and solid management teams can fail due to the whims of the market, stiff competition, or
just bad luck. In 2019, the failure rate of startups was around 90%. Research concludes 21.5%
of startups fail in the first year, 30% in the second year, 50% in the fifth year, and 70% in their
10th year. But don't let these statistics discourage you: if at first, you don't succeed, try again.
Entrepreneurial Skills FAQs
What Are the Most Important Skills for a Successful Entrepreneur?

While there is no magic formula for beings a successful entrepreneur, those who do succeed
tend to have mastered the following set of skills: good and effective communication; being able
to sell both themselves and their idea or product; strong focus; eagerness to learn and be
flexible; and a solid business plan.
What Are the Personal Qualities of a Good Entrepreneur?

In addition to honing one's skills, personal qualities (or so-called "soft skills") also matter a
great deal. Being likeable and friendly helps—nobody wants to partner with somebody who is
difficult to work with. Being creative, versatile, and resilient in the face of great challenges all
also help.
What Are the Most Important Skills in Business?

Once a business is up and running, be a good manager and having a good business sense and
money-savvy is crucial. Many otherwise good companies fail due to poor leadership,
mismanagement of cash, or poor management. Having a business strategy in place from the get-
go and sticking to it is crucial.
-END OF MODULE 3-
Learners
Activity 57
Instruction: Write down the most unforgettable success
story of your life and the greatest lesson that you learn from it.
SUCCESS STORY:
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FIRST QUARTER
MODULE 4 – WEEK 4

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“Success is the child of audacity”
- Benjamin Disraeli
Lesson Title: Generating Business Ideas
1. Identify the market problem to be solved or the market need to be met; and
2. Determine the possible product/s or service/s that will meet the need;
3. Propose solution/s in terms of product/s and service/s that will meet the need using
techniques on seeking, screening, and seizing opportunities:
Good Business Ideas Are All Around You

Wondering how to come up with a business idea? Well,
business ideas are all around you. Some come from a
careful analysis of market trends and consumer needs;
others come from serendipity. If you are interested in
starting a business, but don't know what product or
service you might sell, exploring these ways of coming
up with a business idea will help you choose.
Every successful entrepreneur hates this question: “Where do you get your ideas from?” There
is no one true answer. Great business ideas don’t manifest because you want them to. At best,
they surface sporadically and parboiled from the metaphysical soup of your brain, a big bowl of
memories, impressions and disparate facts. And while there isn’t a magic formula for creating
entrepreneurial brilliance, there are, however, things you can do to increase your chances.
Market problems are your target market’s stated or silent problems. This could refer to existing
inefficiencies, awkward workflows or non-optimal solutions. The key to finding a market
problem is to listen for frustrations, or “if only” statements
Market problems: Example

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If you had a gardening tools business, you would interview gardeners to identify problems that
occur on the job. One problem could be that paper yard
bags do not stay open while people are weeding.
While your interviewees might say, “I need a better paper

bag,” the bag not staying open is the market problem. You
might choose to solve this problem in a number of ways
(for example, using a different material, installing a paper
bag ring); however, discovering the actual problem (that
is, the paper bag won’t stay open) is the most important
aspect of this exercise.
How to evaluate market problems
Evaluate the identified market problems by asking (and answering) the following questions.
1. Is the market problem urgent?

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?
2. Is the market problem pervasive?

Determine if the identified market problem applies to a significant percentage of your target
market. Use quantitative research to collect the data. Methods of data collection include
surveys, census information and other primary market research. This can be accomplished
without investing significant resources. Use free survey tools (for example, Survey Monkey)
and your personal network (depending on the target market) to collect a large amount of
quantitative data.

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3. Will your buyers pay to have this problem solved?
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. This can be achieved by conducting surveys or
additional interviews with your target market. (To understand how to price a product, read the
article, Pricing).
Note: If you answered “Yes” to all of the preceding questions, then you will
have identified a problem that is worth solving. Be sure to investigate whether
your competition is already solving this problem, otherwise you might not have
a competitive edge in your market.
- END OF MODULE 4 –

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Direction: Identify at least five big problems that
the world is facing right now and give possible
solution by offering a product that caters the
demand of the market.
PROBLEM PO
1.
2.
3.
4.
5.

FIRST QUARTER

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MODULE 5 – WEEK 5
“A big business starts small”

- Richard Branson-
Lesson Title: Development of Business Plan
1. Understand and explain business plan
2. Enumerate the different elements of business plan
3. Define product
4. Describe the characteristics of consumer products and industrial products.
5. Illustrate the characteristics and consumer motivation connected to specialty products
6. Discuss the concept of unsought goods
7. Discuss the characteristics of shopping products as a specific type of product.
What Is a Business Plan?

A business plan is a written document that describes in detail how a business—usually a startup
—defines its objectives and how it is to go about achieving its goals. A business plan lays out a
written roadmap for the firm from marketing, financial, and operational standpoints.
Business plans are important documents used to attract investment before a company has
established a proven track record. They are also a good way for companies to keep themselves
on target going forward.

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Although they're especially useful for new businesses, every company should have a business
plan. Ideally, the plan is reviewed and updated periodically to see if goals have been met or
have changed and evolved. Sometimes, a new business plan is created for an established
business that has decided to move in a new direction.
Elements of a Business Plan
The length of the business plan varies greatly from business-to-business. All of the information
should fit into a 15- to 20-page document. If there are crucial elements of the business plan that
take up a lot of space—such as applications for patents—they should be referenced in the main
plan and included as appendices.
As mentioned above, no two business plans are the same. But they all have the same elements.
Below are some of the common and key parts of a business plan.
 Executive summary: This section outlines the company and includes the mission

statement along with any information about the company's leadership, employees,
operations, and location.
 Products and services: Here, the company can outline the products and services it will
offer, and may also include pricing, product lifespan, and benefits to the consumer. Other
factors that may go into this section include production and manufacturing processes,
any patents the company may have, as well as proprietary technology. Any information
about research and development (R&D) can also be included here.
 Market analysis: A firm needs a good handle of the industry as well as its target market.
It will outline who the competition is and how it factors in the industry, along with its
strengths and weaknesses. It will also describe the expected consumer demand for what
the businesses is selling and how easy or difficult it may be to grab market share from
incumbents.
 Marketing strategy: This area describes how the company will attract and keep its
customer base and how it intends to reach the consumer. This means a clear distribution
channel must be outlined. It will also spell out advertising and marketing campaign plans
and through what types of media those campaigns will exist on.
 Financial planning: In order to attract the party reading the business plan, the company
should include its financial planning and future projections. Financial statements, balance
sheets, and other financial information may be included for already-established
businesses. New businesses will instead include targets and estimates for the first few
years of the business and any potential investors.
 Budget: Any good company needs to have a budget in place. This includes costs related
to staffing, development, manufacturing, marketing, and any other expenses related to the
business.

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PRODUCT
A product is the item offered for sale. A product can be a service or an item. It can be physical
or in virtual or cyber form. Every product is made at a cost and each is sold at a price. The price
that can be charged depends on the market, the quality, the marketing and the segment that is
targeted.
A product needs to be relevant: the users must have an immediate use for it. A product needs to
be functionally able to do what it is supposed to, and do it with a good quality.
MAJOR TYPES OF PRODUCT
1. Consumer Product - also referred to as final goods, are products that are bought by

individuals or households for personal use. In other words, consumer products are goods that
are bought for consumption by the average consumer.
The following are the types of consumer products
 Convenience Goods - A convenience product is an inexpensive product that requires a
minimum amount of effort on the part of the consumer in order to select and purchase it.
Examples of convenience products are bread, soft drinks, pain reliever, and coffee. They
also include headphones, power cords, and other items that are easily misplaced.
 Shopping goods - consumer goods that are usually purchased only after the customer
has compared price, quality, and style in more than one store. Examples are;

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Computers, Mobile phones, Entertainment equipment, such as an Xbox or PlayStation,
Cameras, Household furniture, Washing machines and dishwashers.
 Specialty goods - Specialty goods are those considered unique by the buyer, who will go
to great lengths to get them. From the perspective of consumers, specialty goods are so
unique that they will go to great lengths to seek out and purchase them. Almost without
exception, price is not a principle factor affecting the sales of specialty goods. Although
these products may be custom-made (e.g. a hairpiece) or one-of-a-kind (e.g. a statue), it is
also possible that the marketer has been very successful in differentiating the product in
the mind of the consumer. A product is a specialty good if customers know what brand
they will purchase prior to feeling the need for it. Since a specialty good entails a high
degree of customer loyalty, the shopping effort does not involve comparing one brand
against another, but finding a store that carries the item in question.Specialty goods have
higher profit margins and higher prices relative to convenience or shopping goods. For
the most part, manufacturers of specialty goods sell their products on the basis of product
quality, reliability, and image, rather than on the basis of price.Usually, the person who
purchases an expensive specialty item is not as concerned about price as the average
consumer. In markets for specialty goods, sellers do not encourage comparisons between
options. Additionally, since buyers invest time to reach the stores carrying their desired
product, the dealers do not necessarily need to be conveniently located.
 Unsought goods - Unsought Goods are goods that the consumer does not know about or
does not normally think of buying. Purchases of unsought goods may arise due to danger
or the fear of danger. The classic examples of known but unsought goods are funeral
services, encyclopedias, fire extinguishers, and reference books. In some cases, even
airplanes and helicopters can be cited as examples of unsought goods. The purchase of
these goods may not be immediate and can be deferred. Hence, unsought goods require
advertising and personal-selling support, and extensive marketing in other areas as well.
Marketers have classified products on the basis of durability, tangibility, and use
(consumer or industrial).
2. Industrial Products - Industrial goods are those purchased by organizations for use either in
other products or in their operations. Manufacturers, commercial businesses, non-profit
institutions, and government agencies buy industrial goods. Industrial goods can be classified
into raw materials, component parts, major equipment, accessory equipment, operating
supplies, and services. If a consumer buys an air conditioner for use at home, the air conditioner
is a consumer product. If the same consumer buys the same air conditioner for use in his
factory, it is an industrial product.
Industrial goods can be classified into;

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1. Capital goods.
2. Raw materials.
3. Component parts.
4. Major equipment.
5. Accessory equipment.
6. Operating supplies.
7. Services.
Capital goods
Capital goods are industrial products that are directly used in production. Capital goods consist
of installations and accessory equipment. Buildings, plants, and machinery are examples of
installations.
Installations are usually bought directly from the producer. Accessory equipment includes
workman’s tools and office equipment like calculators, fax machines, etc.
Accessory equipment is marketed through intermediaries because the buyers of those products
are scattered over a large geographic area, and individual purchase volume is small.
Raw Materials
These are industrial goods that will be used in the making of other products. Included in this
category are natural resources such as forest products, minerals, water, oceanic products, and
agricultural products and livestock. In most instances, raw materials lose their individual
identities when used in the final product.
Materials and parts become a part of the buyer’s product through further processing. They
include raw materials and manufactured materials and parts. Raw materials include farm
products and natural products such as jute, cotton, wheat, fruits, crude petroleum, coal, iron ore,
and natural gas.
Farm products are supplied by many small producers who sell them to intermediaries. These
intermediaries then process and sell them. Natural products are of big bulk and low unit value
and to be transported from producer to user.
Producers of natural products are few in number and large. They market their products directly
to industrial users.
Manufactured materials and parts include component matters such as iron, yarn, cement, and
wires, and component parts such as small motors, tires, and casting. Component materials
usually are processed further.

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For example, the pulp is made into paper. Component parts enter into the finished product
wholely. For example, amplifiers are fixed in CD players.
Generally, manufactured materials and parts are sold directly to industrial users. In marketing
manufactured materials and parts, more emphasis is given on price, and service is given more
attention than branding and advertising.
Component Parts
Unlike raw materials, parts usually have been processed before being used in the finished
product. Although they may not be visible, parts are left intact and assembled into the total
product.
Major Equipment
This category comprises industrial products used to make, process, or sell other goods. These
include machinery, typewriters, computers, automobiles, tractors, engines, and so on.
Normally, they are relatively expensive and have a useful life over one year. Major equipment
is not limited solely to the production process. It is found in wholesale (e.g., forklifts) and retail
(e.g., cash registers) operations.
Accessory Equipment
This equipment includes industrial products used to facilitate the production process or
middleman sales. It does not become part of the finished product but aids in the overall
production or selling effort.
Accessory equipment would include tools, shelving, and many other products that tend to have
a lower cost and shorter life than major equipment.
Operating Supplies
Supplies include operating supplies like office stationery, repair, and maintenance items.
Supplies can be treated as convenience products of the industrial market as they are purchased
with minimal effort.
These are products that are incidental to the production or selling functions. Included in this
category are low cost and quickly (within one year) used up in the company’s operations.
Pencils, papers, lubricating oils, cash register, tape, and maintenance and repair items are
included in this category.
Services

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Business services include maintenance and repair services, factory premise cleaning, office
equipment repair, and business consultancy services. These services are generally provided
through contracts by small producers and manufacturers of the original equipment.
Services normally should not be considered as a separate product classification. Depending on

the particular service, they are either consumer or industrial goods. They are activities, benefits,
or satisfactions offered for sale or are provided in connection with the sale of goods.
Industrial services are purchased for use in producing the buyer’s products or, more frequently,
general operations. Like consumer services, industrial services are not as standardized as goods,
nor are they as tangible or as durable.
- END OF MODULE 5 -
SELF - ASSESSMENT
Direction: Identify what type of consumer product are the following.
Product Type of Product

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1.
2.
3.
4.
5.
6.
7.
8.

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9.
11.
12.
13.
14.
15.

FIRST QUARTER
MODULE 6 – WEEK 6

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“In order to succeed, your desire for SUCCESS should be greater than your fear of FAILURE”
- Anonymous
Lesson Title: Key Concepts of Marketing
Learning Objectives;
At the end of this module, the learners can;
1. Define and understand marketing
2. Discuss the evolution of marketing
3. Enumerate the 4P’s of marketing and its function to the different marketing strategies
4. Explain the significance of marketing in the growth and success of the business
5. Discuss the different marketing strategies
MODULE CONTENT:
DEFINITION OF MARKETING
Marketing is the process of getting

potential clients or customers interested in
your products and services. The keyword in
this definition is "process". Marketing
involves researching, promoting, selling,
and distributing your products or services.

This discipline centers on the study of
market and consumer behaviors and it
analyzes the commercial management of
companies in order to attract, acquire, and
retain customers by satisfying their wants and needs and instilling brand loyalty.
The definition of marketing is the action or business of promoting and selling products
or services, including market research and advertising. Today, marketing is something that
every company and organization must implement in its growth strategy. Many companies use
marketing techniques to achieve their goals without even realizing it. Marketing refers to
actions a company or organization takes to promote themselves and increase sales of their
product or service. It is one of the key aspects of business.

People often do not know exactly what marketing is and, when asked, they define it as
selling or advertising. While these answers are not wrong, they are only a part of marketing.

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It involves many other things like product distribution, promotion, designing and creating
materials like landing pages and social media content, building customer experience, doing
market research and establishing target markets, and much more
Marketing is very broad and encompasses all strategies that help a company, brand, or
individual achieve its objectives.
THE HISTORY OF MARKETING
Do you know how marketing has evolved over time?

Not too long ago, marketing mostly consisted of
outbound marketing, which meant chasing potential
customers with promotions without really knowing if
that person was interested in purchasing. Thanks to the
digital transformation and the rise of new
communication channels, marketing has drastically
changed over the years.

To understand how marketing has changed, let’s take a
look at this timeline has assembled showcasing the
innovations of this industry.

1450-1900: Printed Advertising
 1450, the world of books and mass copies is revolutionized.
 1730, the magazine emerges as a means of communication.
 1839, posters become so popular
 1922, radio advertising begins.
 1941, television advertising begins.
1950-1972: Marketing is Born and Grows
 1954, for the first time revenue from television advertising surpasses revenue from
radio and magazine ads.
 Telemarketing grows as a means of contacting buyers directly.
 1972, print media suffers an exhaustion of the outbound marketing formula.
1973-1994: The Digital Era Flourishes
 1973, Martin Cooper, a Motorola researcher, makes the first call through a cell phone.
 1981, IBM launches its first personal computer.
 1984, Apple introduces the new Macintosh.

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 1990-1994, major advances in 2G technology, which would lay the foundation for the
future explosion of mobile TV.
 1994, the first case of commercial spam through e-commerce is produced.
1995-2020: The Era of Search Engines and Social Media
 1995, the Yahoo! and Altavista search engines are born.
 1998, Google and MSN launch new search engines.
 1998, the concept of blogging arises. By mid-2006, there are already 50 million blogs
worldwide.
 2003-2004, three social networks are launched: LinkedIn, MySpace and Facebook.
 2005, the first video is posted on YouTube
 2006, Twitter is born.
 2009, Google launches real time searches.
 Young people between the ages of 13 and 24 spend 13.7 hours on the Internet,
compared to 13.6 hours watching television.
 2011, Snapchat is created, driving even more young users to their phones and fueling
the social media app craze.
 2012, there are already 54.8 million tablet users.
 2014, the rise of Influencer marketing begins. Users and brands alike begin to realize
the power of social media users with large followings
 2014, for the first time ever mobile usage outweighs desktop usage. More users are
checking social media, reading emails, and making purchases on their phones.
 2015-2016, big data and marketing automation are explored and used more robustly to
advertise to users.
 2018, video marketing continues to grow, especially with Instagram’s launch of IGTV.
Video content is no longer just limited to YouTube and Facebook.
 2019-2020, Move over millennials! Gen Z is the new focus and they have a hot new
app: TikTok.
It will be interesting to see where marketing continues to grow. With new world events, like
the COVID-19 crisis of 2020 causing millions of people to stay indoors, social media and
marketing trends are sure to change, and we’ll be right here to track them.
THE 4P’S OF MARKETING

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The 4 Ps of Marketing are a simple formula for identifying and working with the essential
elements of your marketing strategy.
 Product. Having a product is key and is the

root of all things marketing. A product could be
anything that a company offers consumers to
satisfy a need. The best thing to do is to decide
on your product or service based both on the
needs and motivations of consumers and how
the product would benefit the consumer, rather
than on the object’s physical characteristics or
attributes.
 Place. Strategic merchandising locations can
be anything from an online store to a channel of
physical stores across multiple towns or
countries. The goal of the distribution strategy is
to enable potential clients to have easy access to your products/services as well as offer a
good experience throughout the purchasing process.
 Price. How we price our products and services is an extremely important part of
the marketing strategy. This factor affects other factors such as:
o The margin we hope to obtain.
o What target market do we want to present ourselves to and what purchasing
power do our consumers have? Do we want to enter the luxury market or bet on the
mass market?
o The company's financial goals.
o How does the competition price their products and what possible product
substitutes are there?
o Trends and fads.
o Increased price in order to give a better perception of quality.
 Promotion. This refers to all the marketing and communication actions we carry out
in order to diffuse the benefits and characteristics of our product or service within the
market. This is how we increase sales.

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WHAT DOES MARKETING DO TO YOUR
BUSINESS?
Marketing can help your business in countless

ways but let’s take a look at a few of the most
impactful ones.

1. Raising Brand Awareness

This is important because it gets people acquainted with your brand and the
products or services you provide. It also makes you memorable to
customers who can begin to trust your brand, become loyal clients, and tell
their network about you.

2. Generating Traffic
Growing the number of visitors to your site means getting more qualified leads and
ultimately increasing your sales . An effective marketing strategy will help you through this
process.
3. Increasing Revenue
Every business want to increase their sales and marketing can help
achieve this goal through a variety of strategies like optimizing your
website and SEO, creating email campaigns, performing A/B tests to
pinpoint the best strategy for you, and much more.

4. Building Trust in Your Brand
Creating a high level of trust in your brand leads to customer
loyalty and repeat purchases. This not only increases revenue but
also leads to great reviews both online and by word of mouth,
which is still one of the most effective types of promotion.

5. Tracking Your Metrics
Metric are incredibly helpful when it comes to creating your marketing strategy. They not
only drive the strategy and help track its progress, but also inform what can be adapted or
adjusted to continually optimize your campaigns.

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Different Marketing Strategies
Marketing is not just one single strategy, but rather a combination of many different
techniques and tactics. Below we've listed some essential marketing strategies that you
should know about.
Marketing Plan: Discover what a marketing plan is, why you need to design one, and
the keys to creating a strong plan. Without a marketing plan, a company or brand can’t reach
its goals.
 Digital Marketing: Digital marketing is the discipline of marketing which focuses
on developing a strategy solely within the digital environment.
 Direct Marketing: Direct marketing is a type of campaign based on direct, two-way
communication that seeks to trigger a result from a specific audience.
 Email Marketing: Email Marketing is one of the most profitable and effective
techniques in terms of return. Naturally, it consists of sending emails to your audience, but
make sure to define your segments well in order to be effective.
 Mobile Marketing: Mobile Marketing is a broad concept which brings together all
marketing campaigns and actions focused exclusively on mobile platforms and
applications (i.e. smartphones and tablets).
 Viral Marketing: Having something go viral is every company’s dream. Viral
Marketing spreads from one person to the next and is capable of going incredibly far
incredibly fast.
 Performance Marketing: Performance Marketing is a methodology which applies
various marketing methods and techniques and guarantees advertisers that they only have
to pay for achieved results.
 Inbound Marketing: This methodology focuses on creating valuable content to
attract qualified traffic and work towards the final sale.
- END OF MODULE 6 -

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Direction: Identify the different marketing strategies used by the following companies.
COMPANY NAME MARKETING STRATEGIES
1. JOLLIBEE
2. COCA - COLA
3. TANDUAY
4. APPLE COMPANY
5. SAMSUNG
6. VIVO
7. ABS – CBN
8. HUAWEI
9. OPPO
10. NATURE SPRING

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12. NESTLE
13. UNILEVER
14. SAN MIGUEL CORP.
15. VIRIGINIA

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FIRST QUARTER
MODULE 7 – WEEK 7
“Stretch your awareness of possibilities”
Lesson Title: Relationship Marketing

1. Define “relationship marketing”
2. Explain the value of customer/ customer relationship
3. Illustrate successful customer service strategy in the Philippines business enterprise
MODULE CONTENT
RELATIONSHIP MARKETING
What is relationship marketing and why is it

important? A marketing philosophy that puts
customer satisfaction first, relationship
marketing has been shown to provide longer
lasting, more profitable customer-company
relationships. Relationship marketing dates
back to the 1980s, when retailers and service
providers began to move past transaction-
based marketing theories and towards customer relationships, retention and journeys.
By providing customers with more meaningful and personalized customer experiences,

businesses are able to develop closer, longer-lasting ties with their customers. Not only does
this encourage customers to keep coming back (thereby increasing customer lifetime value), but
it also improves upon the reputation of the company. A closer customer relationship further aids
a company in identifying the type of experiences, products and services that customers truly
desire.
Relationship marketing is also known as “building a buyer journey” or “personalized marketing

strategies,” as it focuses on building revenue through healthier client relationships.
Personalization is also the core of relationship marketing.

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A closer relationship with customers is almost universally beneficial to a business, creating new
ways in which the business and the client can interact, and allowing the business to explore a
deeper and more meaningful relationship with its audience demographics. Relationship
marketing theory hinges upon the idea that customer retention is cheaper than customer
acquisition, and satisfied customers will build value for the business.
Overall, companies are moving more towards relationship marketing now, as customers are
developing closer interactions with brands. Through social media and mobile devices,
customers are more likely than ever to interact with brands one-on-one and connect with brands
in a context that goes beyond traditional, transactional marketing. Customers are yearning for
real relationships rather than shallow ones.
At the same time, relationship marketing can be a resource-intensive process, and it’s important
that a business thoroughly understand how relationship marketing works for it to apply it in an
efficient, effective way. As an example, companies now find themselves moving away from
self-reporting “touch stones” in the buyer’s journey and are instead attempting to assess all of a
buyer’s interactions with a business from scratch.
Relationship Marketing Examples
Relationship marketing focuses on building up

customer loyalty. That includes listening to
customers, providing what they want,
connecting with them on a personal level and
customizing offerings for them. Everyone’s
relationship marketing strategy will look
different, depending on their budget, time,
market and metrics.
There are also different levels of relationship marketing. Here are 3 levels of relationship
marketing examples, based on where the customer is in their journey:
 Level 1: Customizing to the customer. Increasingly, platforms are using information from
the customer’s interests and hobbies to identify the right offerings for them. By
customizing products, services, content and more towards the customer, it becomes
possible to deliver more of what they’re interested in and solidify the customer’s
relationship with the brand. This occurs at a lower level because it doesn’t involve any
personalized interaction, just platform interaction.
 Level 2: Rewarding customer loyalty. Previous customers are already customers who
have proven to be interested in your product and services. Remarketing to existing
customers is a way to improve upon customer relationships. As customers continue to
make purchases, they can be rewarded with discounts and special offers.

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 Level 3: Connecting with high value customers on a personal level. The Pareto principle
(80/20 rule) states that 80 percent of your organization’s profit will come from 20 percent
of its customers. High value customers should be courted by the company, invited to
provide feedback and offered solutions and products tailored to them. Celebrating your
relationship with your customers can also build these relationships.
The primary goals of relationship marketing are to show your customers that they are valued
and determine what they want from your business. With this in mind, the relationship marketing
examples above show that this strategy can grow in many ways alongside the business.
Customer Relationship Marketing
Customer relationship marketing keys into

the benefits of building customer
relationships. The concept of customer
relationship marketing is focused on the
idea that a stronger relationship between a
customer and a business will undoubtedly
lead to a customer spending more money
with the company, engaging with the
company and advocating for the company.
Witnesses to these customer interactions
will further see the benefits of relating to
the company and will seek to engage with the company themselves.
Yet there are some complications when it comes to customer relationship marketing. Foremost,
it can be hard to track relationships. A customer relationship management suite is a platform
often used by teams to measure or manage their relationship marketing. In terms of technology,
CRM and relationship marketing are inextricably linked: relationship marketing is the
marketing philosophy, while CRM is used to implement it.
Through customer relations management and relationship marketing, businesses are able to
encourage customer retention, which costs a fraction of customer acquisition. As customers
become brand advocates, word of mouth spreads, and the company’s reputation grows among
interested parties. This customer relationship management and relationship marketing pdf
resource can describe the benefits of a customer relationship suite.
The connection between relationship marketing and revenue can be seen in a relationship
marketing and customer satisfaction which indicates how customers interact with a business.
Customer satisfaction builds over the course of relationship marketing efforts, and the buyer
journey provides insights into how to reach out to customers. As relationship marketing

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strategies build, resources such as a “building customer relationship in service marketing PPT”
can be used to show whether the relationship marketing is effective.
Over time, customer relationships build upon the company’s marketing efforts, while the
company’s marketing efforts support a higher Customer Lifetime Value. Customers are more
willing to engage in a business that they find trustworthy, and building loyalty eventually leads
to customers themselves bringing in new clients for the brand. More satisfied customers further
cost the business less money, as they are less likely to have complaints.
Importance of Relationship
Marketing
How does relationship marketing directly

impact sales and marketing goals? It’s
critical to understand the cause-and-effect
of relationship marketing to understand the
importance of relationship marketing.
Energizer emphasizes the importance of
relationship marketing why? Because it
grows revenue. This importance of
relationship marketing PDF shows the most
basic benefits.
Successful relationship marketing leads to:
 Return customers rather than continuous customer churn.

 Higher value customers who individually complete more transactions.
 Lower marketing costs and increased word-of-mouth advertising.
 Better ideas of what customers truly want and what their experience is.
 Stable and sustainable growth with a more reliable customer base.
To grow relationship marketing in a business, a company can have seminars, conferences,

training and tools such as an “importance of relationship marketing” PPT. Relationship
marketing has to grow from within, with employees developing a customer-centric company
culture.
The role of relationship marketing is to determine what customers want and to deliver it,
thereby making it far more likely that companies will invest both emotionally and financially
with the company. The importance of relationship selling is that it’s a cost-effective way to
connect with customers on a highly personal and personalized level, securing and retaining
customers. The importance of relationship marketing in B2B sales is even more significant, as
B2B buyers tend to invest more in their business relationships when evaluating their new
purchases and new partners.

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Benefits of Relationship Marketing
What are the core benefits of relationship

marketing?
 A shorter deal cycle.

 More customers won.
 Higher customer retention.
These are the core benefits of relationship marketing, but what are the downsides? A benefits of
relationship marketing will also note that relationship marketing does take a lot of time. Not
only do employees need to take time building relationships with customers, but large volumes
of data and interactions need to be collected to determine whether a business is fostering solid
relationships. Further, the benefits of relationship marketing to the organisation may not be as
significant if the company does not lend itself to lengthy, long-term relationships. Businesses
that often sell a single product to a customer once, for instance, or that focus on quantity of
sales over quality of sales, may not find relationship marketing as worthwhile.
It takes time to both test and develop a relationship management strategy. It’s more than
presenting a benefits of relationship marketing PPT: it’s an entire philosophy and culture of
doing business that may not always be worthwhile to the business. The question is whether in
the advantages and disadvantages of relationship marketing disadvantages of relationship
marketing exceed the advantages.
Still, despite these disadvantages of relationship marketing, most businesses are going to find
that the advantages and disadvantages of relationship marketing have a net benefit. For many
businesses, achieving customer satisfaction and retention is the key to success. The
disadvantages of relationship marketing (seen in this disadvantages of relationship marketing
PDF), can pale in comparison to the positive results. Most of the challenges of relationship
marketing can be defeated by approaching it as a step-by-step process.
Types of Relationship Marketing
There are many types of relationship marketing

depending on what’s important to a business. Any
marketing campaign needs to be tailored to the
company itself. Some common types of
relationship marketing include:

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 Customer service first relationship marketing. This type of marketing strategy focuses on
providing the best in customer service and care, giving customers everything they need
when they connect with the business. However, it has a failing: customers need to first
connect with and communicate with the business to experience this level of customer
care.
 Content marketing campaigns. A less interactive relationship marketing technique,
content marketing campaigns seek to build relationships and authority with a customer by
providing important, vital information that the customers need. These marketing
campaigns develop a one-sided relationship with a customer but can impact many
customers at once.
 Social media relationship campaigns. Social media makes it possible to directly interact
with customers one-on-one, making it a very powerful and potent relationship marketing
strategy. As social media is highly visible, marketing can be significant.
The type of relationship marketing you follow will directly impact your evaluation of
relationship marketing strategies. Nevertheless, the principles of relationship marketing and the
elements of relationship marketing will stay the same: they will focus on a customer-centric
approach that delivers what the customer desires. The major characteristics of relationship
marketing and the very nature of relationship marketing are all designed to secure and retain
customers.
- END OF MODULE 7-

57
SELF – ASSESSMENT:
Direction: Answer the following case studies;
CASE STUDY:
When You Cannot Offer a Solution to the Customer
There will be times when you may not have an instant solution
for the customer. Telling that to the customer can be slightly
tricky, especially if you notice that the customer is already
annoyed. But dealing with an angry customer is part of the job
description, and there is really no way of escaping it.
Problem:
Customer service representatives are only human and may not be able to offer a resolution of
customer queries on the first contact. When customers have to chat or call the service
department multiple times, it can be a hassle for them.
Reasons:
There may be several reasons why agents may not be able to offer immediate solutions. These
include:
 ________________________________________________________________________
___________________________________________________________________________
___
 ________________________________________________________________________
___________________________________________________________________________
___
 ________________________________________________________________________
___________________________________________________________________________
___
Solution:
You can go through possible solutions options in a scenario such as this:

57
 ________________________________________________________________________
___________________________________________________________________________
___
 ________________________________________________________________________
___________________________________________________________________________
___
 ________________________________________________________________________
___________________________________________________________________________
___
 ________________________________________________________________________
___________________________________________________________________________
___
Even though this is not the ideal situation to end the conversation, it is a common occurrence in
customer service. Just make sure that whenever you get back to the customer, the solution
should be able to meet their expectations.

57
FIRST QUARTER
MODULE 8 – WEEK 8
“The aim of selling is to satisfy customer needs, the aim of marketing is identify the customer needs”
Lesson Title: Marketing Environment

1. Discuss and understand the elements of marketing environment and its relevance to
marketing planning.
2, Analyze the components of macro and micro environment and its influence to the marketing
planning.
What Is Marketing Environment?

Marketing Environment is the combination of external and internal factors and forces
which affect the company’s ability to establish a relationship and serve its customers.
The marketing environment of a business consists of an internal and an external

environment.
 The internal environment is company-specific and includes owners, workers, machines,

materials etc.

57
 The external environment is further divided into two components: micro & macro.
 The micro or the task environment is also specific to the business but is external. It
consists of factors engaged in producing, distributing, and promoting the offering.
 The macro or the broad environment includes larger societal forces which affect
society as a whole. It is made up of six components: demographic, economic,
physical, technological, political-legal, and social-cultural environment.
“A company’s marketing environment consists of the actors and forces outside of marketing
that affect marketing management ability to build and maintain successful relationships with
target customers”. – Philip Kotler
Components of Marketing Environment

The marketing environment is made up of the internal and external environment of the
business. While the internal environment can be controlled, the business has less or no control
over the external environment.
Internal Environment
The internal environment of the business includes all the forces and factors inside the
organization which affect its marketing operations. These components can be grouped under the
Five M’s of the business, which are:
 Men: The people of the organisation including both skilled and unskilled workers.
 Minutes: Time taken for the processes of the business to complete.
 Machinery: Equipment required by the business to facilitate or complete the processes.
 Materials: The factors of production or supplies required by the business to complete the
processes or production.
 Money: Money is the financial resource used to purchase machinery, materials, , and pay
the employees.
The internal environment is under the control of the marketer and can be changed with
the changing external environment. Nevertheless, the internal marketing environment is as
important for the business as the external marketing environment. This environment includes
the sales department, the marketing department, the manufacturing unit, the human resource
department, etc.

57
External Environment
The external environment constitutes factors and forces which are external to the business
and on which the marketer has little or no control. The external environment is of two types:
 Micro marketing environment

 Macro marketing environment
Micro environment
The micro-component of the external environment is also known as the task environment.
It comprises of external forces and factors that are directly related to the business. These include
suppliers, market intermediaries, customers, partners, competitors and the public
 Suppliers include all the parties which provide resources needed by the organisation.
 Market intermediaries include parties involved in distributing the product or service of
the organisation.
 Partners are all the separate entities like advertising agencies, market research
organisation, banking and insurance companies, transportation companies, brokers, etc.
which conduct business with the organisation.
 Customers comprise of the target group of the organisation.
 Competitors are the players in the same market who targets similar customers as that of
the organisation.
 Public is made up of any other group that has an actual or potential interest or affects the
company’s ability to serve its customers.
Macro Environment
The macro component of the marketing environment is also known as the broad environment. It
constitutes the external factors and forces which affect the industry as a whole but don’t have a
direct effect on the business. The macro-environment can be divided into 6 parts.
Demographic Environment
The demographic environment is made up of the people who constitute the market. It is
characterized as the factual investigation and segregation of the population according to
their size, density, location, age, gender, race, and occupation.
Economic Environment

57
The economic environment constitutes factors which influence customers’ purchasing power
and spending patterns. These factors include the GDP, GNP, interest rates, inflation, income
distribution, government funding and subsidies, and other major economic variables.
Physical Environment
The physical environment includes the natural environment in which the business operates. This
includes the climatic conditions, environmental change, accessibility to water and raw
materials, natural disasters, pollution etc.
Technological Environment
The technological environment constitutes innovation, research and development in technology,

technological alternatives, and innovation inducements also technological barriers to smooth
operation. Technology is one of the biggest sources of threats and opportunities for the
organisation and it is very dynamic.
Political-Legal Environment
The political & legal environment includes laws and government’s policies prevailing in the
country. It also includes other pressure groups and agencies which influence or limit the
working of the industry and/or the business in the society.
Social-Cultural Environment
The social-cultural aspect of the macro-environment is made up of the lifestyle, values, culture,
prejudice and beliefs of the people. This differs in different regions.
Importance of Marketing Environment
Every business, no matter how big or small, operates within the marketing environment. Its
present and future existence, profits, image, and positioning depend on its internal and external
environment. The business environment is one of the most dynamic aspects of the business. In
order to operate and stay in the market for long, one has to understand and analyze the
marketing environment and its components properly.
Essential for Planning
An understanding of the external and internal environment is essential for planning for the
future. A marketer needs to be fully aware of the current scenario, dynamism, and future
predictions of the marketing environment if he wants his plans to succeed.

57
Understanding Customers
Thorough knowledge of the marketing environment helps marketers acknowledge and predict
what the customer actually wants. In-depth analysis of the marketing environment reduces (and
even removes) the noise between the marketer and customers and helps the marketer to
understand consumer behavior better.
Tapping Trends
Breaking into new markets and capitalizing on new trends requires a lot of insight about the
marketing environment. The marketer needs to research about every aspect of the environment
to create a foolproof plan.
Threats and Opportunities
Sound knowledge of the market environment often gives a first-mover advantage to the
marketer as he makes sure that his business is safe from future threats and taps the future
opportunities.
Understanding the Competitors
Every niche has different players fighting for the same spot. A better understanding of the
marketing environment allows the marketer to understand more about the competitions and
about what advantages do the competitors have over his business and vice versa.
-END OF MODULE 8-

57
Direction: Identify the micro-environment
and the macro-environment of the following
businesses
MACRO - ENVIRONMENT MICRO-

BUSINESS NAME ENVIRONMENT
1.
2.
3.
4.

57
5.
6.
7.
9.
10.
-END OF 1ST QUARTER-

57

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