The word “entrepreneur” is derived from the French verb enterprendre which means “to undertake”.

This refers to
those who “undertake” the risk of New enterprises. An enterprise is created by an entrepreneur. The Process of
creation is called “entrepreneurship.

Importance of Entrepreneurship

1. Entrepreneurship generates new wealth in an economy.

2. Entrepreneurship decreases poverty.
3. It creates opportunities, ensures social justice, instills confidence and Stimulates the economy.
4. Entrepreneurship improves productivity.
5. Entrepreneurs create jobs.
6. Entrepreneurs innovate.
7. Entrepreneurs create innovation and social change.
8. Entrepreneurs give to society

THREE LEVELS OF COMPETENCIES

1. Personal competencies
2. Interpersonal competencies
3. Business competencies

THE POTENTIAL MARKET

 Potential Market – the part of the total population that has shown some level of interest.
 TAM – Total addressable market

HOW TO IDENTIFY YOUR POTENTIAL MARKETS?

 Consider ever target demographic that you currently sell to, as well as those you have not yet targeted.
 Identify what they have in common

MARKETING STRATEGIES

 Demographic information
 Best forms of media
 What they prefer
 Concerns, struggles, or problems that you can help them overcome
 Values
 Language

WHY IS POTENTIAL MARKET IMPORTANT?

 For future growth

 For identifying new costumers
 Thinking proactively
 Show the potential of your business
 Increase your revenue
 Creates a plan B

A MARKET CONSISTS OF:

Existing Costumers – People who have already purchased.

Prospects – Who are willing and capable buyers. They have not yet purchased but are considering it.
Target Market Users – Not currently looking for a solution.

PRODUCTS AND SERVICES

Client – A person who only receives official and professional services.

Customer – a person who buys goods and services from the business stores.

PRODUCT

 Anything we can offer

 To satisfy a need
 Includes services, events, persons, places, organizations or even ideas.
 Tangible

SERVICES

 Special form of product.

 Consists of activities, benefits, or satisfactions,
 Intangible

HOW TO MEET THE NEEDS

 Research
 Distribute the information
 Craft product features
 Collect customer feedback

7 PS

POSITIONING

Three Overlapping Objectives

1. Enterprise Perspective

• Scans the market environment

2. Competitive Perspective

• Differentiate and distinguish itself from its competitors

3. Costumers Perspective

• Way of costumers perceive the enterprise and its products or services in their minds.

PRODUCTS
A tangible good or the intangible service that the enterprise offers to its customers in order to satisfy their needs and to
produce their expected results.

Four General Types of Products

1. Breakthrough Products
 Double the performance at half the cost
 More convenient and easy to use
2. Differentiated Products
 Try to claim a new space in the mind of the costumer
 May add additional benefits on special aspects of the product
3. Copycat Products
 Will not make much impression on the consumer’s mind.
4. Niche Products
 Do not compete directly with the giants

PACKAGING

1. Identifies the product, describes its features and benefits, and complies with government rules. Specifying its
contents, weight, chemical composition, and potency.
2. Differentiates the product from its competitors and its other brand offerings.
3. Lengthens the lifespan
4. But it is an environmental issue itself. Recyclability and biodegradability are now a major concern.
5. The aforementioned purposes have increased the cost of packaging and price of product.

PLACE

Finding a good location proves to be challenging but maximizing the potentials of that location is more challenging.

INITIAL LOCATION SCREENING

1. Customers residing or working in the area. Who frequently passes.

2. Density per unit area
3. Access routes to alternative locations
4. Buying habits of costumers
5. Locational features

FINAL CHOICE

1. Image and location conditions

2. Exact fit to target costumers
3. Clustering or competitor establishments
4. Future area development
5. Fiscal and regulatory requirements

2 MAJOR PLACE DETERMINANTS

GEOGRAPHY DETERMINANT

Decision Tensions

 Concentration versus destination

  Access versus abundance
 Clustered versus dispersed
 Developed versus underdeveloped
 Physical versus virtual
 Upscale versus downscale

ATMOSPHERE DETERMINANT

Decision Tensions

 Formal vs Informal
 Exclusive vs Public
 Conservative vs adventurous
 Aesthetics vs functionality
 Minimalist vs Maximalist

PEOPLE

 The ultimate marketing strategy

 Sell and push product
 Search hard to find the right market
 Distribute, promote, price and sell products in the most attractive place

PEOPLE PLAY A CRUCIAL ROLE IN THE SUCCESS OF THE ENTERPRISE

4 LEVELS OF PEOPLE’S MARKETING EFFORT

 Create costumer awareness

 Arouse costumer interest
 Educate customers
 Close the sale and deliver the products

PROMOTION

The explicit communication strategy adopted by an enterprise to elicit the patronage, loyalty, and support from its
significant stakeholders.

ENCOMPASESS

 Advertising
 Websites
 Flyers
 Emails
 Letters
 Telemarketing

3 CRITICAL FACTORS

1. Credibility of the communicator

2. Message and medium of the message
3. Receptiveness of the audience
PRICE

Pricing depends on the business objectives set by the enterprise.

PRICES COULD BE

 A premium to project a quality image and to distance the product from its inferior competitor
 To set very low to survive in a competitive market
 Cost recovery pricing charges a price that allows the organization to merely recover its full costs
 Marginal pricing sets the price higher than the variable costs

Different kinds of Business Plans

1. Business Plan written prior to setting up an enterprise

To convince investors about the soundness and potential of their Business, convey capabilities and competencies of
owners and Managers

2. Business Plan written during the first few years of the Enterprise

To guide entrepreneurs which strategies would be beneficial

3. Business plan that is focused on bringing the enterprise to Higher level of growth

Enterprise reached its peak and want to enter new endeavour.

Business Plans serves many masters

1. Serves entrepreneur who must set the Navigational course

2. Serves investors and cautious financiers
3. Serves managers and staff of the Organization so they will know the Strategies and programs of the enterprise

Business Concept

 Contains the essence of the enterprise in a concise and powerful Manner

 Stresses the value of the product offering to the target Customer.

Business Model

 Product concept translated to business model

 It is formula on how the enterprise exactly plans to make money Out of business

Business Goals

 Show the future and long-term prospects of the enterprise

FOUR TYPES OF STAKEHOLDERS

 Resource mobilizers and financial backers

 Technology providers and applicators
 Governance and top management
 Operating and support team

Business plan should estimate total market supply and demand for the product offerings, and the major critical factors
that influence this Market.