“Entrepreneurship is a pathway to success.

” Many of us Filipinos see education as a means of

being successful. You often hear your parents reminding you of being a diligent student in school and
working hard so you can land a reputable position in a company or in the government, as these
equate to “success.” Some even view living abroad as a measure of success. Nowadays, however,
we see another path to success – entrepreneurship.

The word entrepreneur originates from the French word, entre which means “between” and prendre,
which means “to undertake.” In a business context, it means to start a business. The Merriam-
Webster Dictionary presents the definition of an entrepreneur as one who organizes, manages, and
assumes the risks of a business or enterprise.

ENTREPRENEURSHIP is a proactive process of developing a business venture to make a profit

(Batisan, R. Entrepreneurship). It involves seeking opportunities for a market, establishing and
operating a business out of the opportunity, and assessing its risks and rewards through close
monitoring of the operations (Batisan, R. Entrepreneurship).
Entrepreneurship or pagnenegosyo in the Filipino language can be witnessed almost everywhere.
Can you give examples of businesses that you know in your own vicinity.

1. It produces more jobs

that equate to an 2. It expands
increase in national economic
income. activities of
different
sectors
of society.

3. It introduces new and innovative

products and services.
4. It improves
people’s living
standards.

5. It disperses the economic power 6. It controls the local wealth and

and creates equality. balances regional development.

8. It elicits economic independence and

capital formation.

7. It reduces social conflicts and

political unrest.
Entrepreneurship and employment are two different career paths that a person can choose depending on his
or her personal aspirations and work characteristics. It is really up to the person at the end of the day on what
career trail he or she will follow, considering all compelling career factors that are important to him or her.

Pros and Cons of Entrepreneurship and Employment

Important Career Factors Entrepreneur Employee
Income  Income generated  Income generated
passively even when the actively (i.e., no work no
entrepreneur is resting. pay, working per/hr rate)
 Opportunity income  Income usually
unlimited, depending on fixed/month and
the success of increases every year
the business. depending on
 Income only earned when the employer and employee’s
the business is performance
successful.  Income earned whether
the business is successful
or unsuccessful
Hiring and Firing,  Provides jobs; owner  Seek for a job and follow
Organizational Setup, and usually have all the right to series of process before
Major Key Result Areas conduct the selection hiring
 Fully responsible for  Has the goal of satisfying
serving customers, the immediate supervisor
employees and sustaining  Fully dependent on
the business profitability employer’s performance
 Has the power to  Can only work for the
disengage non- current employer
performing employees exclusively
 Can venture into
expansion of business
Daily Task o Performs all necessary o Has routine tasks and
variable to establish and works on regular or
manage a startup normal hours
business; give all his time o Follows policies,
in the business and procedures, and
sometimes gets no sleep. memoranda from the
o Prepares policies, employer
procedures and
memoranda for the business.
Taxation  Taxed on the net income;  Taxed on the gross
can claim taxable income income; cannot use
deductions for allowable expenses incurred related
expenses incurred by the to job such as food and
business transportation expenses
to claim for deductions
from taxable income
Comfort Level of Work  Is comfortable in doing  May be comfortable with
multiple and challenging routines and minimal risks
tasks and takes
accountability with the risks
and profits of the business

Leisure Time and - Has a flexible schedule - Has a limited number of

Vacations and can take unlimited vacation days imposed by the
number of vacation days employer

Class you can used your imagination for the following business…..CAREERS IN ENTREPRENUERSHIP
Business in the Philippines
1. Sari-sari store
2. Rice Retailing
3. Food cart business
4. Printing business
5. Buy-and –sell business
6. Street food business
7. Flea market business or tiangge
8. Online selling business
9. Cellphone loading business
10. Laundry and dry-cleaning business
Description
Is one of the easiest businesses to set up
due to minimal capital required and it can
be managed at home.
Simply because rice is the staple food of
the Filipinos and other Asian countries, rice
retailing business is very common in the
country.
this business is also very popular in the
Philippines. The number of food cart
businesses is not as big as the number of
sari-sari stores, but food carts are present in
almost every populous location. They are
usually located inside or outside the malls,
schools, parks, train stations, and offices.
This business is also lucrative in the
Philippines because the demand is very
high. Usually situated near the schools and
offices.
This business is one of the emerging
businesses in the Philippines, and it is
not just done traditionally in brick-and-
mortar stores but also over the Internet.
This kind of business is widespread in the
Philippines. Street food business are
literally located in streets.
In this type of business, entrepreneur set up
a small space and sell any type of goods in
a palengke setup that is normally in an open
space.
This business deals with adding the
Internet as a marketing and transaction
channel for selling. This is very similar with
buy-and-sell business, except that the
focus is on selling existing and established
products online.
Very in-demand now a days because of
our situation now.
More than 95% of Filipinos are prepaid
mobile phone users, according to an article
published by the Philippine Daily Inquirer
(2018). Moreover 98% of Filipino
households have access to mobile phones.
This type of business is often located at
central business districts and areas with
several condominiums and townhouses. The
business owner should follow hygiene
requirements before starting this business.
 11. Hair styling and make up business
12. Spa, gym, and nail care business
13. Video and Photography business
14. Tutorial business
15. Baking business
16. Web site development and
design/blogging
17. Direct selling business
18. Car wash and care business
19. Bar, cafe and restaurant
20. Water station and LPG station
Types of Business
A type of business identifies how you take part in the business field that you choose.
Your personal characteristics and your available networks often guide you into a suitable type of
business.
There are three types of business according to activities:
One of the successful businesses in the
Philippines is the hairstyling business,
which includes parlors and barber shops.
Filipinos are generally conscious about
their proper grooming and hygiene.
Related to Hair styling and make up
business. One of the ways Filipinos cope
with stress is by going to spa. This
business offers a range of massage
treatments that can relax the stressed
areas of the body, as well as other skin
treatments such as facials and body
scrubs.
This business requires talent in capturing
precious moments of celebrators in
weddings, birthdays, anniversaries,
graduations and other important events.
This business caters to students who are
not able to catch up with their lessons.
A lot of bakeries are present in almost all
neighborhoods in the Philippines because
bread is the second staple food of Filipinos.
The popularity of the internet brought so
many opportunities to Internet-savvy
budding entrepreneurs. In this business,
the Web site developer conceptualizes and
implements a Web site for another
business whose objective is to inform,
persuade, and remind its customers.
This business is also very common in
Philippines.
You often see this business in large cities
because of the proliferation of cars.
The number of foodies has increased
because the Filipino palate became
globalized.
These businesses can never go wrongs as
they continuously serve households.
1. Services
Service providers are people whose businesses sell a particular service, such as
transportation, tours, hairdressing, banking, deliveries, construction, repairs,
cleaning, painting, nursing, etc. If you enjoy working with people and satisfying their
specific needs providing services maybe your forte.

2. Merchandising
Merchandising is a business that sells tangible products. This type buys finished
goods or almost finished goods from their suppliers and resell the same to
customers. There are two types of merchandising business.

a. Wholesaling

Wholesalers are businesses that buy large quantities of certain goods from
manufacturers and resell those goods to retail outlets, who then resell them to
individual consumers. If you are familiar with companies that make and sell their
goods in bulk and you are good at establishing relationships with retailers, you
may want to be a wholesaler.
Mang Pedro worked for a construction materials
company for several years. He is very familiar with all
the brands and knows the quality of various
construction materials. When repairing his house last
year, he realized that there was no shop in the area
selling the supplies he needed. He decides to open a
shop near his home, selling all types of basic
construction materials, such cement, bricks, tiles,
sand, paint, etc. He enjoys meeting people and
advising them about the different types of
construction materials.

b. Retailing
Retailers purchase ready-made goods from wholesalers or suppliers for resale at
a profit. Some examples of retail businesses are grocery stores, appliance store,
clothing store, stationery store, computer and mobile phone shops, etc. If you like
meeting different people and you have access to a good location to open shops.
Retailing may be a good option for you.

Kimmie loves fashion. While she was a student in the University,

Kimmie went shopping and discovered a source of inexpensive
imported clothes and accessories. She decides to buy fashion items
from that source and resell it in e-business (online business)
 3. Manufacturing
Manufacturers are business that use new raw materials, such as
leather, waste material, wood, cloth or metal and make new or
different products out of those materials. Some examples of
manufacturing businesses are shoemakers, dressmakers, furniture
makers, paper producers and farm equipment manufacturers. If you
know how to produce a good and to make something that is in
demand and valuable to customers, you may want to go into
manufacturing.
The entrepreneurial process is a step-by-step procedure in
establishing any kind of business that an entrepreneur has to undergo. It is
composed of four aspects.

4. Opportunity spotting and assessment

This is the beginning of the process and is considered the most difficult.
Entrepreneurs at this point assess the entire marketing environment by
taking note of interesting trends, consumers’ need and feedback,
problems in the environment and many more. These are all reliable
sources of opportunity information because opportunities originate from
them.

What is an opportunity? It is an entrepreneur’s business idea that can potentially

become a commercial product or service in the future. Something you can make
money with, develop a business around it, or create value with it. In our language,
it’s “mapagkakakitaan.”

5. Developing a business plan.

Entrepreneurs should formulate a business plan when they
have already spotted and assessed the opportunities for a market. A
business plan is a comprehensive paper that details the marketing,
operational, human resource, financial strategic direction, and tactics in
business.

6. Determining the capital needed

It is mandatory in the entrepreneurial process to calculate the
resources (money, time, skills, properties, etc.) needed to establish the
business and compare this against the entrepreneur’s current resources.

7. Running the business.

This is the implementation of the business plan.

MACROENVIRONMENTAL
The macro-environment is more general - it is the environment in the economy
itself. It has an effect on how all business groups operate, perform, make
decisions, and form strategies simultaneously. It is quite dynamic, which
means that a business has to constantly track its changes. It consists of
external factors that the business itself doesn’t control but is certainly affected
by.
1. STEEPLED (see table below)
2. INDUSTRY (food industry, service industry etc.)
This is the source of the current trend on what is happening in the
industry where the future business will belong to. For example, the
entrepreneur should be fully acclimated on what is happening with the
rice industry if he or she wants to establish a rice retailing business.
3. NEW DISCOVERY OR KNOWLEDGE
These are new trends than can be the core business model of a new
venture. For example, the influx of mobile applications necessitates
businesses to have this platform as one of their transaction channels.
4. FUTURISTIC OPPORTUNITIES
These are the projected new opportunities that can possibly affect the new
business while it is running. For example, sari-sari stores can incorporate
bills payment in the future.
STEEPLED ANALYSIS
 Socio-cultural Factors
- represent a general view of a locality’s traditions, customs,
beliefs, norms and perceptions.
(Health consciousness, Education level, Attitudes, Emphasis on
safety, Buying habits, Religion & beliefs)

 Technological Factors
- composed of innovations of an existing technology or an
invention of a new one mostly on applied science and
engineering research areas.
(Basic infrastructure level, Rate of technological change,
Spending on research and development, Technology incentives,
Access to newest technology)
 Economic Factors
- has a direct effect on any business venture
(Growth rates, Inflation rates, Interest rates, Exchange rates,
Price fluctuations, Stock market trends)

 Environmental or Ecological Factors

- will help the entrepreneur determine if the business he or she
is entering into will comply with the environmental standards or
will just hazard to people, animals and nature.
(Weather, Climate change, Laws regulating environment, Air &
water pollution, Waste management, Endangered species)

 Political Factors
- induced by the government policies and administrations
(Government stability, Bureaucracy, Corruption level, Tax
policy, rule of law, Political rights)

 Legal Factors
- Government laws and regulations that can restrict or allow
business activities
(Anti-trust Law, Discrimination Law, Copyright Patents, Consumer
Protection, Employment law)

 Ethical Factors
- factors that will serve as entrepreneur’s guides on how
to be ethical in running the business.
(Ethical advertising and sales practices, accepted
accounting, marketing & management standards

 Demographic Factors
- these are the characteristics of the people in the target
market.
(Age distribution, Gender Distribution, Social Classes,
Family size & structure, Minorities)

The entrepreneur should know why and when to say no to an opportunity.

That’s why you have to SCREEN them.

Opportunity Screening is the process of cautiously selecting the best

 opportunity. The entrepreneur should say NO to an opportunity if it does not
contain any of these business opportunity elements:

1. Has superior value to customers

Superior value is created when customers are willing to pay
more for your product or service than competitors', or when
they prefer your version of a product or service to all others
because it meets their needs better and maybe even exceeds
their expectations.
2. Solves a compelling problem, issue, a need, or a want
Ex. During your observation, there is only one barber shop in
your barangay. Pursuing a business like this will solve the
problem of shortage in that service business.
3. Is a potential cash cow
A cash cow is a metaphor used for a business or a product,
which exhibits a strong potential in terms of returns or income.
4. Matches with the entrepreneur’s skills, resources, and risk appetite.
As discussed before, it’s necessary that the business you
choose suits your personality and skills. Ex. A landscaping
business is great for a person who loves gardening as a
hobby.

After you have spotted and assessed an opportunity, it is important that

you also screen the opportunity. You have to consider the number of your
potential customers, their exact need whether it is a product or a service to
ensure your profit. Aside from that, you also need to enhance your skills, your
available resources and your willingness to risk. As an entrepreneur you need to
keep in mind those elements.

B. Discussing new concepts and practicing new skills #1

Putting your ideas, opportunities and information together is called making
a Business Plan. As discussed on the last module, preparation of the business
plan is the second stage of the entrepreneurial process. You need to prepare the
Business Plan because it helps you to:
 Decide if you should start your business or not. Starting a business will
change your life completely. Therefore, you need to make sure that you
make the right decision. The Business Plan will help you to judge whether
or not to starting a business is the right decision.
 Organize your opportunities, ideas and information so that you will see
how to start and run your business in the best possible way. The business
plan follows a standard sequence of relevant topics which help you to
visualize the road ahead.
Present make your business plan in the actual dream.
A Business Plan should cover all the important aspects to be considered
before starting a business.
I. Executive Summary
II. Study background
III. Macroenvironmental and Micromarket Analysis
IV. Marketing Plan
V. Operational/Organization Plan
VI. Financial Plan
VII. Appendix

Look in to more details:

Main parts of the Purpose
Business Plan
Executive Summary The executive summary is an outline of your business idea. You will,
therefore, need to complete all the other parts of the business plan before
doing the executive summary. It must be clear and organized because it is
the
first impression one gets on your business idea.
Study Background All business ideas are based on an idea and opportunity. Think about the
concept of your business so that you can put your information in writing at the
beginning of your Business Plan.
These includes the main business opportunity or idea, such as nature of the
business, the vision and mission of your business and objectives of the
business.

Sample Vision, Mission and Objectives of Pampanga’s Best

Vision
Pampanga’s Best envisions to give every Filipino household and individuals in
East Asia, Middle East, North America, and Europe, the pride in eating its
famous and varied Tocino, Longaniza, and Tapa and other frozen deli.

Mission
By using the best and advanced technology and processes it shall exceed the
standards of the Good Manufacturing Practices in assuring the quality of the
products, thereby creating excellent value for its customers; and satisfied and
elated customers.

Objectives
 Increase commitment to quality assurance and exceed customers’
expectations
 To be the industry’s leader in technology and product innovation
 To be the first local manufacturer to receive accreditation from the
targeted countries for distribution
 To increase product awareness in the market
 To create an excellent brand image in the global market

Source: www.pampangasbest.com

Macroenvironmental As mentioned earlier, the first step in venturing into a new business is
& Micromarket OPPORTUNITY SPOTTING AND ASSESSMENT. This includes the Macro
Analysis and the Microenvironmental Factors.

For Macroenvironmental Analysis:

1) STEEPLED
For Microenvironmental Analysis:
1) Consumer preferences, interests, and perception
2) Competitors
3) Location
Marketing Plan Marketing is everything you do to find customers and satisfy their needs while
making profit. This part will be discussed on the next module.
 Operation and Manpower, machinery, materials and methods that will help you to start your
Organizational Plan business.
Financial Plan Starting capital to run the business and how will you sustain such business in
your daily operations. And the preparation of financial statements.
Appendices References should have given appreciations and mentors who help you out in
starting your business.

There are three types of innovations according to the degree of

distinctiveness.

1. Breakthrough innovation – These inventions occur infrequently as

these establish the platform on which future innovations in an area are
developed. These innovations must be protected by a patent, a trade
secret, or a copyright.
2. Technological innovation - These innovations occur more frequently
than breakthrough innovations. These innovations are technological
advancements of an existing product or service
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.
Technology push – is when research and development in new
technology drives the development of new products. It tends to start
with a company developing an innovative technology and applying it
to a product.
Technology pull – refers to the need/requirement for a new product
or a solution to a problem, which comes from the market place. A
product or a range of products are developed, to solve the original
need.

The selecting process, called the seizing process, involves refining and
developing this opportunity. The refining process is called product or service
planning and development process. It has four key stages.

2. Concept stage 3. Product 4. Test

1. Idea stage marketing stage
development
stage
1. Identify the feasible
products and/or services
that will perfectly suit the
opportunity. It may be
useful to think about
business opportunity or
ideas by considering
also all the resources
and institutions in the
area of business place
You don’t have to solely
rely on your own
creativity for ideas for
new products or
services. Look for ideas
in any number of places:
requests from
customers, brainstorms
with employees,
responses to a
competitor’s product, or
suggestions on social
media.
2. The developed 4. This stage validates
idea will undergo a 3. The entrepreneur the work done from
consumer will conduct a the first three stages to
acceptance test. consumer panel where measure success in the
This test includes the actual product or commercialization of
getting the initial service samples will be the product or service.
reactions of the given to potential
primary target customers for criticism
market and the purposes. They are
also given samples of
distribution channel.
Both favorable and competitors’ products
or services for
unfavorable results
will be considered to comparative purposes.
devise an acceptable
product or service.

As discussed previously, a marketing plan is a part of an overall business plan. It is a

comprehensive document or blueprint that outlines the advertising and marketing efforts for the
coming year. It describes business activities involved in accomplishing specific marketing
objectives within a set time frame. A marketing plan also includes a description of the current
marketing position of a business, a discussion of the target market and a description of the
marketing mix that a business will use to achieve their marketing goals. It shows the step or
actions that will be utilized in order to achieve the plan goals.
 Marketing Mix is a combination of elements that you will use to market
your product. Marketers use the marketing mix to create a value for their product.
The marketing mix has seven elements which allow you to control your product;
the original 4Ps - product, price, place and promotion, with the additional 3Ps –
people, packaging and process. Each element is analyzed so that you can
achieve success in the marketplace. Just like the halo-halo described above, the
measure of each ingredients depends on the need and the taste of the customer.
How delicious the taste of the halo-halo be will rely on the mixture of ingredients.
Each element can be examined independently, but in practice, they are often
dependent on one another.

THE MARKETING MIX

1. Product – A product is any physical good, service, or idea that is created by

an entrepreneur or an innovator in serving the needs of the customers and
addressing their existing problems. The product or service should not be created
before finding the right customers, because this is very risky and the resources
and time might be put to waste.
“What product or service is the most appropriate for the opportunity,
and why will customers buy or avail them?”

Example: McDonald’s sells a wide range of fast food products such as

hamburgers and cheeseburgers, several chicken sandwiches, wraps and french
fries. The company also offers salads, oatmeal, shakes and other beverages.
Each product has its name like Big Mac and McFlurry.

2.Place – The place refers to a location or the medium of transaction. A strategic

location depends on the nature of the business and the primary target market. In
a physical location, the entrepreneur must research about the area’s population,
the traffic, the people’s common paths, their buying behavior, and their
preferences for the location. In a cyber location, the entrepreneur must use Web
analytics data to understand Web site performance (e.g., number of visitors,
duration of their stay on the Web site, or the frequently visited contents).

“What location is best suited for the business where there are more
potential customers?”

There are 36,258 McDonald’s restaurants in 119 countries. The company states
that McDonald’s look for the best locations within the marketplace to provide
customers with convenience.

3.Price - Price is the peso value that the entrepreneur assigns to a certain
product or service after considering its costs, competition, objectives, positioning,
and target market. It is the only P in the 7Ps that generate income. Common
pricing strategies will be presented tomorrow. (Day 3)
 “What is the most appropriate price, and what pricing strategies will be
used for the target customers?”

McDonald’s follows cost leadership business strategy and accordingly, its foods
and drinks are offered for competitive prices.

4.Promotion – It involves presenting the products or services to the public and

how these can address the public’s needs, wants, problems or desires. The main
goal of promotion is to attain attention. There are various promotional strategies
that can be applied in business. They will be discussed next lesson.

Going back to the first activity above, you will agree that Quick Shoe
Repairs will probably get more customers in the future, while Mr. Papel will lose a
potential customer. If everyone has the same experience with these two
businesses and then tells his or her friends and relatives. Quick Shoe Repairs will
be successful and profitable, whereas Mr. Papel will make losses. Therefore, a
customer’s opinion or feedback plays a powerful role in when they serve as the
advocate of your own product or service. This is a promotional strategy which is
very effective.

“What is the most effective advertisement or combination of

advertisements, and which advertising tool should be used to
drive awareness and increase sales?”

Jollibee
 The Jollibee Foods Corporation invests substantially in digital marketing
activities to reap high and effective results. It also invests in traditional
media channels to reach maximum consumers in the market

 Jollibee Foods Corporation also takes part in direct consumer

engagement through on- ground activities where the company initiates
trials (: Investing in socio-civic programs designed to serve its host;
advocacy campaigns such as the early Christmas drive “ma- Aga ang
pasko sa Jollibee; poverty housing project with Habitat
for Humanity, and the Kaya Mo Yan Kid” or “You can do it, kid!” campaign
to encourage kids to show their potential contributed to the company’s
overall success, not only with its customers but with all its stakeholders.)

5. People – People is one of the three additional Ps in the marketing mix. People
play a vital role in servicing customers even the entrepreneur sells only physical
goods. Employees have become a major influence in the customer’s buying
behavior.

“What type of people need to be hired? What are the basic skills
needed for the job? What leadership style will be applied by the
entrepreneur?”

 Jollibee Foods Corporation has a large workforce across different companies

 This workforce is continually trained to become experts in their respective
fields of operations

6.Packaging – Packaging is how the product or service is presented to

customers. It is the overall identification (look and feel) of the product or service.
It is the first element that the customers see because they don’t know what’s
inside yet.
 “What is the best packaging for the product that is attractive
enough to customers and cost-efficient at the same time? What
physical evidence does the entrepreneur need to set up so as to
sell the service?”

KFC has started serving side dishes in reusable packaging. The polypropylene
bowls and lids replace expanded polystyrene bowls. KFC also is replacing
EPS clamshells with paperboard for boxed meals.

7.Process – Process is the 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.

Below are the most common pricing strategies:

1. BUNDLING –This is when a customer buys two or more products or

services together for one price instead of buying items separately for
individual prices. (e.g. 3 in 1 coffee for PHP 8.00, manicure and pedicure
for PHP 150.00)
2. PENETRATION PRICING – This is a strategy used by businesses to
attract customers to a new product or service by offering a lower price
initially but the entrepreneur will eventually increase the price once the
desired market share is achieved. It is when companies enter the market
with an extremely low price, effectively drawing attention (and revenue)
away from higher-priced competitors. Penetration pricing isn’t sustainable
in the long run, however, and is typically applied for a short time.
3. SKIMMING – This is the opposite of penetration pricing where prices are
initially high and then they are lowered to offer the product or service to a
wider market and as the product becomes less and less popular.
Technology products, such as DVD players, video game consoles, and
smartphones, are typically priced using this strategy as they become less
relevant over time.
4. COMPETITIVE PRICING – This refers to the benchmarking prices with
the competitors. Businesses who compete in a highly saturated space
(e.g. flea market or tiangge) may choose this strategy since a slight price
difference may be the deciding factor for customers.
5. PRODUCT LINE PRICING – This refers to pricing different products or
services within a parallel product array using varying price points.
6. PSYCHOLOGICAL PRICING –Psychological pricing is what it sounds like
— it targets human psychology to boost your sales.
7. For example, according to the "9-digit effect", even though a product that
costs Php 99.99 is essentially Php100, customers may see this as a good
deal simply because of the "9" in the price. Another way to use
psychological pricing would be to place a more expensive item directly
next to (either, in-store or online) the one you're most focused on selling.
8. PREMIUM PRICING – Also known as premium pricing and luxury pricing,
a prestige pricing strategy is when companies price their products high to
present the image that their products are high-value, luxury, or premium.
Prestige pricing focuses on the perceived value of a product rather than
the actual value or production cost.
9. OPTIONAL PRICING – This refers to adding an extra product or service
on top of the original to generate more revenue
10. COST-BASED PRICING – The basis of markup is the cost of sales.
11. COST PLUS PRICING – The markup is based on a fixed percentage of
cost. It’s also known as markup pricing since businesses who use this
strategy “mark-up” their products based on how much they’d like to profit.

More than anything, though, remember pricing is an iterative process. It’s

highly unlikely that you’ll set the right prices right away — it might take a couple
of tries (and lots of research), and that’s OK.

A brand refers to the identity of a company, of a product of a service, or

of an entrepreneur himself or herself. A brand is a symbol of a promise or
assurance from the entrepreneur that what it purports to the customers will
happen.
 Branding is the process of integrating the strategies formed from the
marketing mix to give identity to the product or service. The goals of branding
include the following: (1) establishing to target customers that the business is
reliable and trustworthy and that the product or service is the superior solution to
their current problem; (2) differentiating with competitors; and (3) driving
customer loyalty and retention.
As an important element of a brand, the brand name is a major
differentiator of the entrepreneur against the competitors. To be different and
catchy, a brand name must possess the following characteristics: