MODULE 5

GELEC-The
Entrepreneurial Mind

Prepared by:

Rebecca Q. Lising, MBA, MAEd

IBE-Instructor
LEGAL CHALLENGES IN ENTREPRENEURSHIP

THE MARKETING ASPECTS OF NEW

VENTURES
Learning Objectives
1. To introduce the importance of legal issues to entrepreneurs.
2. To examine patent protection, including definitions and preparations.
3. To review copyrights and their relevance to entrepreneurs.
4. To study trademarks and their impacts on new ventures
5. To examine the legal forms of organization – single proprietorship, partnership and corporation.
6. To review the importance of marketing research for new ventures.
7. To present factors that inhibits the use of marketing.
8. To examine the marketing concept: philosophy, segmentation, and consumer orientation
9. To establish areas vital to a marketing plan
10. To discuss the key features of a pricing strategy.
 MAJOR LEGAL CONCEPTS AND
ENTREPRENEURIAL VENTURES
I. Inception of an Entrepreneurial Venture

A. Laws governing intellectual property C. Tax considerations

1. Patents D. Capital formation
2. Copyrights
3. Trademarks E. Liability questions

B. Forms of business organization

1. Sole proprietorship
2. Partnership
3. Corporation
4. Franchise
 MAJOR LEGAL CONCEPTS AND
ENTREPRENEURIAL VENTURES
II. Ongoing Venture: Business Development and Transactions

A. Personnel Law
1. Hiring and firing policies
2. Equal Employment Opportunity Commission
3 .Collective bargaining

B. Contract Law
1. Legal contracts
2. Sales contracts
3 . Leases
 MAJOR LEGAL CONCEPTS AND
ENTREPRENEURIAL VENTURES
III. Growth and Continuity of a Successful Entrepreneurial Venture

A. Tax considerations
1. Federal, state, and local
2. Payroll
3. Incentives

B. Governmental regulations
1. Zoning (property)
2. Administrative agencies (regulatory)
3. Consumer law

C. Continuity of ownership rights

1. Property laws and ownership
2. Wills, trusts, and ownership
3. Bankruptcy
INTELLECTUAL PROPERTY PROTECTION

Patent Copyrights Trademarks

Patent provides the owner with
exclusive rights to hold, transfer,
A copyright provides exclusive Trademark is a distinctive
rights to creative individuals for name, mark, symbol, or
and license the production and
the protection of their literary motto identified with a
sale of the product or process as
or artistic productions.
an intellectual property right. company’s product(s) and
registered at the Patent and
Trademark Office
Trade Secrets

• Business processes and information that are

-Unpatentable
-Patentable but not enforceable
-Patentable but you do not wish to
disclose them

• Trade secrets, such as the formula for Coca-Cola,

Kentucky Fried Chicken, etc., have been in effect for
many years.
• If the recipes had been copyrighted, the formula
would have long been in the public domain.
 GENERAL
CHARACTERISTICS
OF FORMS OF
BUSINESS
FORMS OF BUSINESS

#1 #2 #3

Partnership Corporation
A corporation is a
Sole Proprietorship A partnership is a
business owned by
business organization
that has a separate
A sole proprietorship is a two or more persons legal personality from
business owned by only one who contribute its owners. Ownership
person. It is easy to set-up and resources into the in a stock corporation
is the least costly among all entity. The partners is represented by
forms of ownership. The owner divide the profits of the shares of stock.
faces unlimited liability; business among
meaning, the creditors of the themselves.
business may go after the
personal assets of the owner if
the business cannot pay them.
THE MARKETING
CONCEPT FOR
ENTREPRENEURS
 Market
Marketing Research
A group of The process of gathering,
analyzing and interpreting
consumers information about a market,
(potential about a product or service to be
consumers) who offered for sale in that market,
have purchasing and about the past, present and
potential customers for the
power and product or service; research into
unsatisfied needs. the characteristics, spending
habits, location and needs of
your business's target market,
the industry as a whole, and the
particular competitors you face
TWO TYPES OF DATA

Primary Data
This is research you compile
yourself or hire someone to
gather for you

Secondary Data
This type of research is already compiled
and organized for you. Examples of
secondary information include reports and
studies by government agencies, trade
associations or other businesses within
your industry.
INHIBITORS TO MARKETING RESEARCH
Strategic
Costs decisions
Marketing research can be Some entrepreneurs feel that only major
expensive. strategic decisions need marketing
research support.

Complexity
Quantitative aspects frighten many
entrepreneurs.
Irrelevancy
Some entrepreneurs believe that marketing
Key concern is interpretation of the research data either tell them what they
data. already know or are irrelevant

Research techniques rely on overly

complex sampling, surveying, and
statistical analysis
DEVELOPING THE MARKETING CONCEPT
Market Segmentation
Marketing Philosophy  Geographic
Three distinct types of marketing
philosophies exist among new
 Demographic
ventures:
 Psychographic
1. Production Driven Philosophy
 Behavioralistic
2. Sales Driven Philosophy

3. Consumer Driven Philosophy

Consumer Behavior
FIVE MAJOR CONSUMER CLASSIFICATIONS

 Convenience goods
 Shopping goods
 Specialty goods
 Unsought goods
 New products
 Developing a
Marketing Plan
 A marketing plan is the process of determining a clear,
comprehensive approach to the creation of customers.

A marketing plan helps you promote products and services

in your business that meets the needs of your target
market. It requires research, time and commitment, but is a
very valuable process that can greatly contribute to your
business success.
BASIC STEPS IN DEVELOPING A
MARKETING PLAN
Conduct market
02 research
Look at your industry
01
structure
04 Conduct a SWOT
analysis

Define your market 03

and customer profiles
05 Study the competition
BASIC STEPS IN DEVELOPING A
MARKETING PLAN
Set your marketing
08 budget
Set your goals and
06
objectives
09 Keep your marketing
plan up-to-date

Outline your 07
marketing strategies
Pricing strategies
Price is the value that is put
to a product or service and is
the result of a complex set of
calculations, research and
understanding and risk
taking ability.

A pricing strategy takes into

account segments, ability to
pay, market conditions,
competitor actions, trade
margins and input costs,
amongst others. It is
targeted at the defined
customers and against
competitors.
 5 COMMON PRICING STRATEGIES
1. Cost-plus pricing
4. Price skimming

2. Competitive pricing
5. Penetration pricing

3. Value-based pricing
 ACTIVITY

As a form of formative assessment for the online

module, we will have an assessment task that will be
made available today until 11:59 PM of December 12,
2020.

I will provide a file that contains the instructions and

guide questions. Supply answers being asked.

Worksheet 5 will be uploaded either through

Messenger (GC), FB Group, or Google Classroom.
 RESOURCES
BOOKS/REFERENCES:
Kuratko, Donald F. (2015). Entrepreneurship: An Introduction.
Cenage Learning Asia Pte Ltd. Philippine Edition
Timmons, Jeffry A., Gillin, L. M., Burshtein, S., and Spinelli,
Stephen Jr. (2011). New Venture Creation: Entrepreneurship for
the 21st Century – A Pacific Rim Perspective, 1st Edition. McGraw-
Hill Irwin.
Hisrich, R.D., Peters, M.P., and Shepherd, D. (2013)
Entrepreneurship, McGraw-Hill Irwin, Boston.
Kuratko, D. (2013) Entrepreneurship: Theory, Process, and
Practice, 9th Edition, Wiley online library
Online Resources:
https://www.accountingverse.com/accounting-
basics/types-of-businesses.html
https://opentextbc.ca/businessopenstax/chapter/the-
marketing-concept/
https://www.entrepreneur.com/encyclopedia/market-
research
https://blog.alexa.com/types-of-market-
segmentation/#:~:text=Market%20segmentation%20is%
20the%20process,interests%2C%20needs%2C
https://www.tutorialspoint.com/consumer_behavior/cons
umer_behavior_market_segmentation.html
https://business.gov.au/Planning/Business-plans/How-
to-write-your-marketing-plan
https://economictimes.indiatimes.com/definition/pricing-
strategies
THANK YOU!