L.

VILLANUEVA
S.Y. ’23 – ’24 | SEM #2 G3 ENTREPRENEUR
LESSON 1 - It serves as an important tool in helping to obtain
THE BUSINESS PLAN financing.
Explanation:
THE BUSINESS PLAN: CREATING AND STARTING THE VENTURE The business plan is actually the roadmap of the new business. It is
Information Needs the only single written document that must be prepared before
opening a new business or expanding an existing business. It
 Before committing time and energy to preparing a provides a clear direction to any uncertain business endeavor.
business plan, the entrepreneur should do a quick
feasibility study of the business concept to see whether
Presenting the plan
there any possible barriers to success.
- It is often necessary for an entrepreneur to orally present
the business plan before an audience of potential
Feasibility study
investors.
- is another written document that must be prepared and is
- In this typical forum the entrepreneur would be expected
of equal importance as the business plan.
to provide a short (perhaps 20-minutes or half-hour)
- It serves as the forerunner of the business plan.
presentation of the business plan.
- Primary objective is to determine whether the proposed
business is feasible or not in all areas. If the outcome is
LAY-OUT OF A BUSINESS PLAN
positive, then the entrepreneur prepares the business
10 Parts of a Business Plan
plan.
I. Introduction or the Cover Page
Two test conducted:
II. Table of Contents
 Test of possibility – should have positive results, to
III. Executive Summary
proceed with the next test.
IV. Business Description
 Test of feasibility – to test the viability.
V. Market and Industry Analysis
VI. Sales and Marketing
What is a Business Plan?
VII. Production and Technical Plan
- A business plan is a detailed and integrated written
VIII. Management Plan
document prepared by the entrepreneur that describes all
IX. Financials
the various activities involved in opening and operating a
X. Appendix
new entrepreneurial venture.
- It is a integration of functional plans such as marketing,
PART I. Introducing or the Cover Page
finance, manufacturing, sales and human resources.
- Your cover page should say the words "Business Plan," and
should include:
Who should write the plan?
 Name of the owner or owners
- The business plan should be prepared by the
 Business Name
entrepreneur.
 Business Logo
- Though the perspective of the entrepreneur has the major
 Address of the business
influence on the business plan, he/she nonetheless must
 Telephone or Contact number
still consider the views of customers, creditors, and even
 Email address
employees and staff.
 Date
Explanation:
Explanation:
He/she must gather sufficient and relevant information to support
The purpose of a cover page is to tell the reader what he or she is
any perception or conclusion.
about to read and how to reach the writer. Your cover page is also a
way to get your business plan noticed.
Who reads the plan?
- The business plan may be read by employees, investors,
PART II. Table of Contents
bankers, venture capitalists, suppliers, customers,
- All pages of your business plan should be numbered and
advisors, and consultants.
the table of contents should include page numbers.
- There are three perspectives should be considered in
- Be sure to list headings for major sections as well as for
preparing the plan :
important subsections.
 Perspective of the entrepreneur
 Marketing perspective
PART III. Executive Summary
 Investor’s perspective
- The executive summary is what most readers will go to
first. If it is not good, it may be the last thing they read
Why have a Business Plan?
about your company. Lenders in particular read executive
- The business plan is valuable to the entrepreneur,
summaries before looking at the rest of a plan to
potential investors, or even new personnel, who are trying
determine whether or not they want to learn more about
to familiarize themselves with the venture, it goals, and
the company.
objectives.
- Your goal in this section is to generate enough interest to
- It helps determine the viability of the venture in a
make someone want to read further for more detail.
designated market
- This section should answer briefly the basic questions a
- It provides guidance to the entrepreneur in organizing his
venture capitalist would ask.
or her planning activities
 Who is on the team?

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S.Y. ’23 – ’24 | SEM #2 G3 ENTREPRENEUR
 What business is your company in? - Market Size/Trends
 Why should we invest in your product or - Competition
service? - Labor Requirement
 How will you achieve the potential in your - Estimated Sales
business model? Explanation:
 How much money is required? Customers: This description defines the characteristics of the people
- Three to four pages summarizing the complete business you want to sell to and should indicate, among other things,
plan. For this reason, it is often easier to write this section whether your customers are cost or quality conscious, under what
circumstances they buy, and what types of concerns they have.
last.
Segment Description: describe your target customers in terms of
Explanation: common identifiable characteristics.
The executive summary is what most readers will go to first. If it is Needs and Description: always focuses on customer needs. Why do
not good, it may be the last thing they read about your company. they need your product or service? What is going to make them
Your goal in this section is to generate enough interest to make buy?
someone want to read further for more details. It points out the Market Size/Trends: defines the total market size as well as the slice
overall highlights of the business plan as well as the bird’s- eye of the market your business will target.
view of its section. It must be written in simple language that can Competition: indicates where your products or services fit in the
be easily understood at the same time attract the attention and competitive environment. Present a short discussion of each of your
influence the decision of the reader. primary competitors.
Labor Requirement: provides details of other labor you will need to
PART IV. Business Description start up and run your business.
- An overview of the Business Estimated Sales: based on your assessment of the advantages of
- Vision/Mission/Goals/Objectives (VMGO) Statement your product or service, your customers, the size of your market,
and your competition. Use a one-paragraph summary to justify your
 Business Description
projections.
 Type of business
 Business Name
PART VI. Sales and Marketing
 Business Location
- Strategy
 Product Description
- Methods of Sales
 Position
- Advertising and Promotion
 Pricing Strategy
- Slogan/Tagline
Explanation:
Explanation:
Begin your business description with a brief overview of the industry
Strategy: action plan for how you will get customers to buy your
you will be competing in.
products.
Type of business: Is your business retail, wholesale, service,
Methods of Sales: Describe available distribution channels and how
manufacturing, construction, professional, or import and export?
you plan to use them. Will you be selling directly to your customers?
Legal Structure: Sole, Partnership, corporation
Will you be using sales representatives, distributors, or brokers?
Business Name: Make your name memorable. Your name should be
Advertising and Promotion: how you communicate information
appealing and easy to use.
about your product or service. include a description of all advertising
Business Location: Choose the Location of Your Business Wisely
vehicles you plan to use newspapers, magazines, radio & TV, Yellow
Product Description: Be specific in showing how you will give your
Pages, etc. - as well as your public relations program,
business a competitive edge. Stress Your Products Uniqueness (UPS
sales/promotional materials (such as brochures and product sheets),
– Unique Selling Proposition)
package design, trade show efforts, and the like.
Position: how you want the market and your competitors to
Slogan/Tagline : a catchphrase used in advertising; Coca-cola “open
perceive your product or service.
happiness”; “Nike: Just Do It”; Jollibee: “Bida and Saya”; McDonald’s:
Pricing Strategy: what you will charge for your product or service
“Love ko To”
and how you derived the price.

Your business description is your corporate vision, and includes: PART VII. Production and Technical Plan
who you are, what you will offer, what market needs you will - Production Schedule
address, and why your business idea is viable. It should describe - Production Process
exactly what you will be selling, and why people or businesses will - Sources of Materials
buy it. How is your product different from similar items already on
- Production Cost
the market? Compare your product to similar products on the
market. Why is yours better? Explanation:
Production Schedule: presents the total number of goods to be
produced, and the expected time to produce them. (demand for the
PART V. Market and Industry Analysis product, availability of resources, capacity of the plant)
- Customer Profile Production Process: a schematic diagram showing the procedural
 Segment Description steps/stages involved in the production of goods. (Exact processing
 Needs and Description procedure; materials, parts, or ingredients required; expected time
o Who are they? to process the product)
Sources of Materials: the quality of raw materials plays very
o Where are they?
significant role in the production of quality products. Get materials
o What do they need? from reliable and reputable suppliers. (Proximity of the source to the
o How do they make their buying decisions? processing plant; payment terms and conditions; discount and
o Where do they buy? damages; terms of shipment)
o How do you reach them with your marketing and Production Cost: estimated cost of production. List all materials
used in production of goods and provided with the cost which will
sales messages?
serve as the basis in setting its selling price. (labor; direct materials;

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S.Y. ’23 – ’24 | SEM #2 G3 ENTREPRENEUR
factory overhead) - The most effective business plan can become out-of-date
PART VIII. Management Plan if condition change.
- Organizational Structure - If the change are likely to affect the business plan, the
- Roles and Responsibilities entrepreneur should determine what revisions are
- Profit and Loss Sharing needed.
Explanation: - In this manner, the entrepreneur can maintain reasonable
Organizational Structure: Organizational chart. Defines the targets and goals and keep the new venture on a course
hierarchy of the different positions in the organization. that will increase probability of success.
Roles and Responsibilities: must be defined clearly in order to
minimize and avoid misunderstanding and overlapping of functions. Why some Business Plans Fail?
(Job specifications and job description)
- Goals set by the entrepreneur are unreasonable.
Profit and Loss Sharing: How the profit and losses be divided?
- Goals are not measurable
- The entrepreneur has not made a total commitment to the
PART IX. Financials
business or to the family.
- Expenses and Capital Requirements
- The entrepreneur has no experience in the planned
- Sources of Funds
business.
- Financial Plan
- The entrepreneur has no sense of potential threats or
 Projected Income Statement
weaknesses to the business.
 Projected Cash Flows/Statement of Changes in
- No customer need was established for the proposed
Owner’s Equity
product or service.
 Projected Balance Sheet
 Financial Statement Analysis
LESSON 2
Explanation: OPPORTUNITY SEEKING, SCREENING, AND SEIZING
Expenses and Capital Requirements: pull together the expenses
incurred in running your business and the amount of money you will
Opportunity Seeking
need to procure the equipment used to start up and continue
operations of your business. - Entrepreneurs are innovative opportunity seekers,
Sources of Funds: How will the business be funded? separating them from ordinary businessmen whose main
Financial Plan: objective is simply to earn profits from producing, buying,
- Projected Income Statement and selling goods.
- Projected Cash Flows/Statement of Changes in Owner’s - Entrepreneurs introduce new products, innovate product
Equity
features, and improve their products’ operational
- Projected Balance Sheet
- Financial Statement Analysis capability.
- Entrepreneurs may totally change the existing business
paradigm by rendering it obsolete through the
PART X. Appendix
introduction of new technologies, processes, and systems.
- contains backup material
 Letters Explanation:
Disrupt – to cause something to be unable to continue in the normal
 Market research data
way, to make something that is not the usual way (get out of the
 Leases or contracts box/comfort zone)
 Price lists from suppliers.
Entrepreneurial Mind Frame, Heart Flame, and Gut Game
Using and Implementing the Business Plan
- Essential to an entrepreneur’s opportunity seeking are the
- The business plan is designed to guide the entrepreneur
Entrepreneurial Mind Frame, Heart Flame, and Gut Game.
through the first year of operations.
- Implementation of the strategy contain control point to
Entrepreneurial Mind Frame
ascertain progress and to initiate contingency plan if
- This allows the entrepreneur to see things positively in the
necessary.
midst of crisis.
- Business plan not end up in a drawer somewhere once the
- In fact, in Chinese writing, crisis is composed of two -
financing has been attained and the business launched.
characters. The first means danger and the second means
opportunity.
Measuring Plan Progress
- Entrepreneur should check the profit and loss statement,
Entrepreneurial Heart Plame
cash flow projections, and information on inventory,
- This is what an inventor and entrepreneur have common.
production, quality, sales, collection of accounts
It is also defined as passion.
receivable, and disbursements for the previous month.
- Passion is the great desire to attain a vision or fulfill a
 Inventory control
mission. Despite several setbacks, an entrepreneur is
 Production control
rather driven to persevere even more.
 Quality control
Explanation:
 Sales control The terms “quit” and “surrender” are not included in the vocabulary
 Disbursements of successful entrepreneurs. They keep on moving forward.
Persistent is the foundation of commitment.
Updating the Plan

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L. VILLANUEVA
S.Y. ’23 – ’24 | SEM #2 G3 ENTREPRENEUR
Entrepreneurial Gut Game
- This refers to the entrepreneur’s ability to sense without
using the five senses. This is also known as intuition.
- The gut game also connotes courage or “lakas ng loob”.
The Many Sources of Opportunities
Macro Environmental Source of Opportunities
- The macro environment refers to the “big or macro
forces” that affect the area, the industry, and the market,
which the enterprise belongs to.
- The macro environment forces is divided into 5
categories- Social, Political, Economic, Ecological and
Technological or SPEET.
1. Socio-Cultural Environment
- This includes demographics and cultural dimensions.
- It helps the entrepreneur assess trends and dynamics of
the bigger consumer population, their beliefs, tastes,
customs and traditions.
2. Political Environment
- The political environment defines the governance system
of the country or the local area of business.
- It includes all the laws, rules, and regulations that govern
business practices as well as the permits, approvals, and
licenses necessary to operate the business.
3. Economic Environment
- Supply and demand forces mainly drive the
macroeconomic environment. They are the
- Same factors that drive the interest and foreign exchanges
rates that fluctuate with the movement of the market
forces.
4. Ecological Environment
- This includes all natural resources and the ecosystem,
habitat of men, animals, plants, and minerals.
- Opportunities abound for greener, cleaner, and healthier
products, whose objectives are to save the planet and
prolong lives.
5. Technological Environment
- New scientific and technological discoveries, which often
lead to the launch and commercialization of new products
with superior attributes, are the entrepreneur’s
nightmares.
Industry Sources of Opportunities
- The next biggest sources of opportunities are the industry
and the market. One of the most difficult aspects about
industry analysis is defining what constitutes an industry in
the first place.
Participants in an industry include:
1. Rivals or competitors in a particular type of business (e.g.,
Jollibee vs. McDonald’s, Coca-Cola vs. Pepsi, Samsung
Galaxy vs. Apple’s iPhone, etc.). True rivals or competitors
are those competing for the same or similar markets.
2. Suppliers of input (e.g., fuel, electricity, raw materials) to
rivals as well as suppliers of machinery and equipment,
suppliers of manpower and expertise, and suppliers of
merchandise.
3. Consumer market segments being served by rivals or
competitors.
4. Substitute products or services, which customers shift or
turn to.
5. All other support and enabling industries.
After identifying the participants, it would help the entrepreneur to
determine the logic of the industry.
Industry
- The most common way of defining an industry is according
to product types or according to the functions of the
product or service.
- Another way is by tracing the industry from its most basic
raw material down to its various consumer applications, or
the product or value-added chain.
Market Sources of Opportunities
- Equally important is the monitoring of the prevalence of
product substitutes and their market impact on the
existing players in the industry.
Micromarket
- refers to the specific target market segment of a particular
enterprise.
Consumer Preferences, Piques and Perceptions
- Consumer preferences refer to the tastes of particular
groups of people. The consumer’s age, culture, and status
affect their preferences.
- In contrast, consumer dislikes refer to the things that
irritate customers.
- Both preferences and dislikes can bring opportunity to
entrepreneurs.
- Because of many choices that customers have to struggle
with every day, a product or service must be able to win
the battle for the customers’ mind.
How to win it?
First: Generate awareness about the new
product or service.
Second: Arise customers’ interest to buy.
Third: Evaluate the product.
Last: Decide to purchase the product.
Other Sources of Opportunities
1. Customer preferences change over time.
2. People’s tastes in clothes, music, shoes, entertainment,
dance, sports, hobbies, and even careers have evolve over
the years.
3. What piques customers is a great source of opportunity.
4. Before the customer is won over; there is first a battle for
the mind. Next, there is a battle for the heart. Finally,
there is a battle for the wallet.
5. The longer the customer wants to use the product, the
greater the chances of creating lasting loyalty.
6. Opportunities has abound in shaping consumer
perceptions or occupying spaces in their minds or places in
their hearts that have not yet been filled.
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S.Y. ’23 – ’24 | SEM #2 G3 ENTREPRENEUR
7. New inventions, new systems and work processes, new
insights about the human psyche, new applications for old
knowledge, new revelations about how the physical world
works, new interpretations, new combinations based on
the convergence of previous technologies, new outlooks
about life should be led, and a host of other new things
are tremendous sources of opportunity.
8. Determining personal preferences and competencies lay
the foundation for a new business venture.
9. Unexpected occurrences in both the external and internal
environment of the enterprise indicate that significant
changes are happening and opportunities are sprouting.
Opportunity Screening
- Because of the many opportunities possible for the
entrepreneur, it is important to come up with a short list
of a few very promising opportunities, which could be
scrutinized in detail.
The Personal Screening
1. Do I have the drive to pursue this business opportunity to
the end?
2. Will I spend all my time, effort, and money to make the
business opportunity work?
3. Will I sacrifice my existing lifestyle, endure emotional
hardship, and forego my usual comforts to succeed in this
business opportunity?
The 12 R’s of Opportunity
1. Relevance to vision, mission, and objective of
entrepreneurs.
2. Resonance to values.
3. Reinforcement of Entrepreneurial Interest.
4. Revenues or sales.
5. Responsiveness to customer needs and wants.
6. Reach places and expands through branches.
7. Range. Can lead into wide range of product or service
offerings.
8. Revolutionary Impact.
9. Returns
10. Relative ease of implementation.
11. Resources required.
12. Risks
The Pre-Feasibility Study
- The opportunity screening matrix aims to narrow down
the many opportunities into one or two most attractive
ones. The next step is to conduct pre-feasibility study to
assure the viability of the opportunity.
- The following factors are contained in the feasibility study:
 Market potential and prospects
 Availability and appropriateness of technology
 Project investment and detail cost estimates
 Financial forecast and determination of financial
feasibility
Market Potential and Prospects
- is based on the estimated number of possible customers
who might avail of the product service. For a more realistic
number, it would help to narrow down your estimation to
the relevant population or target customers in the area
where you want to operate your business (micromarket).
Segment the Market
- Using a set of demographics (e.g., gender, place of
residence, income class, etc.) will be the most basic in
determining the target segment.
- In this regard, the entrepreneur must be able to do actual
field research like surveys, focus group discussion, in-
depth interviews, observation techniques, etc.
Assessing Competition
- Market potential is also affected by the number of
establishments supplying and serving your target
customers. This process would determine how saturated
the market is in the given area of coverage.
Estimating Market Share and Sales
- The next thing that the entrepreneur should assess is the
potential market share he or she can attract.
- In the assessment of market potential, the entrepreneur
should evaluate the relative strength of the various
suppliers or competitors in the market place by asking the
following:
 Who has the dominance?
 Who has greater bargaining power?
 Which segments are saturated and over served and
which are relatively underserved?
 Is it the past expertise in the segment or the weaker
competition in the segment that makes market
segment more attractive?
- The final task is to determine what slice or share of the
targeted market segments he wants to carve out.
- Having determined the forecast, the entrepreneur should
then estimate potential sales. The sales forecast can be
computed using the following formula: (Estimated Sales
Volume x Estimated Price).
Technology Assessment and Operations Variability
There are at least four target customer expectations affecting the
scale and complexity of an enterprise’s operation.
1. Quantities demanded
2. Quality specifications demanded.
3. Delivery expectation
4. Price expectations
Investment Requirement and Production/ Servicing Cost
There are three investments that need to be funded when building
your business:
1. Pre- Operating Cost
2. Production/ Service Facilities Investment
3. Working Capital Investment
Financial Forecasts and Determination of Financial Feasibility
- Upon completing the first three parts of the pre-feasibility
study, the entrepreneur should now be able to proceed
his or her enterprise’s financial forecast for the business.
Financial forecasting calls for the creation of the four critical
financial statements:
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Funds Flow Statement
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S.Y. ’23 – ’24 | SEM #2 G3 ENTREPRENEUR
Income Statement
- The income statement measures an enterprise’s
performance in terms of revenue and expenses over a
certain period.
- Simply put, the formula is:
REVENUE-EXPENSES=INCOME OR PROFIT (LOSS)
Balance Sheet
- Creating the balance sheet is bit more complicated
because one has to look at three different things: assets,
liabilities, and equities.
The balance sheet equation is:
ASSETS=LIABILITIES + EQUITY
Financial Ratios and Measurement
PAYBACK PERIOD= TOTAL INVESTMENT
ANNUAL NET INCOME AFTER TAXES
RETURN ON SALES= NET PROFIT AFTER TAXES
SALES
ROA= NET PROFIT AFTER TAXES
TOTAL ASSESTS
ROI= NET PROFIT AFTER TAXES
TOTAL INVESTMENTS
Opportunity Seizing
- At this stage, the entrepreneur must be able to determine
the critical success factors that enable other players in the
same industry to succeed while, at the same time, be
vigilant about those factors that cause other businesses to
fail.
- The question for the entrepreneur in Opportunity Seizing
is “ Will I be able to manage, to my advantage, the critical
success factors and avoid the critical failure factors?”
Rafting a Positioning Statement
- In order to craft a positioning statement, the entrepreneur
is advised to look at other competitors (or substitutes) in
the market place. Details such as their major buyers,
attributes or features that make competitor’s product
attractive should give the entrepreneur an idea.
- Going through the process of questioning, the
entrepreneur will be able to come up with each of the
competing products’ Main Value Proposition (MVP) and
from there, work on his own positioning. For questioning,
these are some key points to help the entrepreneur:
1. What are the main customer segments?
2. What are the different product attributes and
features of each competitor?
3. What are the existing marketing practices of the
various competitors?
4. What are the market preferences of consumers
when it comes to the products being offered?
Conceptualizing the Product or Service Offering
- In order to come up with the product or service concept,
the following options may be considered by the
entrepreneur:
1. The first is to create a concept similar to the winning
products in the marketplace and ride to the obvious
market trends.
2. Find a market niche that has not been filled by the
competitors.
3. Conceptualize product in a positioning category
where the participants are rather week.
4. Conceptualize a product that would change the
customers think, behave, and buy, thus making
existing products “obsolete” and “old-fashioned.”
Designing, Prototyping and Testing the Product
- Designing means that the entrepreneur must render the
concepts and translate it into its very physical and very
real dimensions.
- The entrepreneur must be able to ‘perfect’ the product or
service as it goes through the available processes while the
product is continuously subjected to testing and
improvement.
Implementing, Organizing, and Financing
- Good planning and good programming are essential to
have good implementation. A good planner and
programmer must make several important choices to
achieve the desired end results.
 First is to choose the correct technology, the one that
would produce the output that would meet the quality
specifications of customers.
 Second is to choose the right people who can perform the
technical and managerial functions necessary to realize the
desired end results.
 Third is to design the operating workflow that would
assure the effective, economical, and efficient production
of the output.
 Fourth is to specify the systems and procedures that
would govern the enterprise, motivate and discipline the
work force, and satisfy the customers.
 Fifth is to design the organizational architecture that
would allow the people to function at their best.
- Given the above considerations, the entrepreneur must be
diligent in taking the necessary steps toward determining
the required resources including people, physical, and
peso or money resources.
Marketing Mix
Marketing Mix (7Ps)
 Product
 Place
 Price
 Promotion
 People
 Packaging
 Positioning
It is very interesting to know that at this point, you can now
start a small business using the knowledge you acquired in
your specific strand It may seem hard, but trying is the best
way to find out. Knowing your marketing mix is one of the first
things that you must consider in putting up your small
business.
Marketing mix
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- will help you in knowing what strategies are suitable
for your chosen business.
- It is the first step to be done even before you create a
business or marketing plan because your marketing
mix has an impact on your positioning, market
targeting and segmentation.
- All the Ps included in the marketing mix are
connected with one another.
Marketing structures
- are necessary to have a strong foundation before
implementing your marketing activities to increase
your chances of success.
- When you have a concrete approach in marketing,
you lessen the chance of wasting resources and
marketing budget is put into better use.
7Ps of Marketing
- One of the frameworks you can apply in introducing
your product and services to customers.
- This framework was an adequate framework for the
time which focused on products.
- Before, there are only 4Ps of Marketing, but as the
economy improves, it was updated by Booms and
Bitner in 1981 (Singh, 2018).
- The 7Ps of marketing is the updated version and
that is what we will learn in this lesson.
There are different ways to succeed in entrepreneurship; it
may be in the form of formulas and models; Marketing Mix
(7Ps) is one of them. You should use 7Ps formula to
continually evaluate and re-evaluate your business activities.
The seven Ps of marketing mix are: product, place, price,
promotion, people, packaging and positioning (Tracy,
2004).
Marketing mix
- is a significant instrument in planning and executing
the right marketing scheme through operative
strategies (Hill, 2016). The assessment of these 7Ps
is very important in the business' overall marketing
approach.
 Product
- according to Martin (2014), is something that gives
satisfaction to consumer
- be it a need or want.
- It also refers to the goods and services offered by
business enterprise to its target customers.
This can be a physical item, a service or a virtual offering. It is
manufactured at a cost and is subsequently made available to
the consumer at a price. Some examples of tangible products
are toothpaste, bread, and motorcycle parts. Some examples
of intangible products are massage, manicure/ pedicure, and
bookkeeping service.
Classification of Products:
1. Tangible Physical
- item that a business enterprise offers.
- Two types are durables and non-durables.
 Durables
- have long interval between purchase such as
appliances and furniture.
 Non-durables
- have stronger repeat purchases, such as food, soaps,
and other consumables.
2. Intangible Services
- are intangible things provided by entrepreneurs to
satisfy the customer such as medical services and
transportation.
A successful product has to fulfill a specific need in the market
and it must be able to do its function as guaranteed. Whether a
need or want, a product must provide clear statement to users
and potential customers regarding its benefits and features.
Need
- The economic definition is something needed to
survive (www.study.com).
- This includes things like food, water, and shelter;
things people cannot live without.
Want
- is one step up in the order from needs and is simply
something that people desire to have, that they may
or may not be able to obtain.
- This includes new pair of shoes, a high-end cellphone
or gadget; things people can live without but still
choose to purchase.
 Place
- refers to distribution or the methods you use for your
products or services to be easily accessible to the
target customers.
- Also called placement or distribution, this is the
process and methods used to bring the product or
service to the consumer (Luenendonk, 2020). Your
product or service dictates how it should be
distributed (www.marketingmix.co.uk). An
entrepreneur must establish his/ her business in the
most strategic place.
- place where the businesses situate and their
accessibility are vital influences in marketing.
- Accessibility relates not just to physical
approachability but to other means of communication
and contact (Chand, 2019). Thus, the types of
distribution channels used (e.g. travel agents, middle
person and their crucial coverage are linked to the
crucial issue of accessibility.
Would you like to run your own business?
 If you own a retail shop, for example, the distribution
chain ends with you and you supply to your
customers directly. As a manufacturer, you can
decide whether to sell your products directly to
consumers or to sell them to intermediaries or
middlemen to distribute them.
Two types of distribution channels (Mendiola (2017):
Direct distribution
- the type of distribution where there is direct sale
between the manufacturer and the consumer.
Indirect distribution
- the type of distribution wherein manufacturer utilizes a
wholesaler or retailer to sell his/her products.
 PRICE
- is the monetary value a customer pays in exchange
for a merchandise or service.
- Determining the right price for your product can be a
bit tricky because of some factors that we have to
consider (www.marketingmix.co.uk).
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A common strategy for beginning small businesses is pricing
their product lower than their competitors. Your pricing strategy
should reflect your product's positioning in the market. The
amount should not project your business as too cheap or too
expensive. Low pricing delays your business' growth while high
pricing kicks you out of the competition
Entrepreneurs have the freedom to select what strategy they
will use in pricing. It can be based on the cost analysis of the
expenses, competition in the market, and customer
demand.
Pricing Strategies (Acutt, 2020):
Cost Plus
- is taking the production expenses (including labor,
materials and other resources) and adding up a
certain profit percentage and then the sum will be the
product's price.
Value-Based
- Instead of using the production cost as basis, an
entrepreneur can consider the customer's perception
of the product's value.
- The perception of the purchaser is dependent on the
product's quality, the brand standing, and benefits,
aside from the cost factors.
 PROMOTION
Competitive
- You can conduct a survey of the pricing applied by
your competitors on a similar product that you are
trying to sell and then decide whether to price your
product cheaper, the same, or higher.
- You should also monitor their prices and be able to
respond to variations.
Promotion
- The strategies you use to endorse your product or
service in the market
- Through it, you let potential customers know what you
are selling.
In order for you to persuade patrons to purchase your product,
you need to explain what it is, how to use it, and why they
should buy it. You should always make your consumers feel
that you can satisfy their needs and wants.
Common Marketing Communication Methods in
Promoting (Lumen Learning, 2020):
Advertising
- is a series of related, well-timed, carefully placed
television ads coupled with print advertising in
selected magazines and newspapers.
- An effective advertising contains a clear message that
is directed to a certain audience and is done through
suitable channels.
Direct marketing
- refers to direct-to-consumer mail pieces sent to target
segments in selected geographic areas, reinforcing
the messages from the ads.
Personal selling
- uses in-person interaction to sell products and
services.
- This is done by the company's sales personnel who
are personally interacting with the customers.
Sales promotions
- are marketing communication tools for stimulating
revenue or providing incentives or extra value to
distributors, sales staff, or customers over a short
time period.
- Sales promotion activities include special offers,
displays, demonstrations, and other nonrecurring
selling efforts that are not part of the ordinary routine.
Digital marketing
- is an umbrella term for using digital tools to promote
and market products, services, organizations and
brands.
- People are now more dependent on digital
communications.
- There are several essential tools in the digital
marketing tool kit: email, mobile marketing, websites,
and social media marketing.
Public relations
- is the process of maintaining a favorable image and
building beneficial relationships between an
organization and the public communities, groups, and
people it serves.
- PR is often referred to as "free advertising"
 PEOPLE
- One of the essential elements of the marketing mix
the people.
- Everyone who is involved in the product or service
whether directly or indirectly is referred to as people
(www.marketingmix. co.uk).
- According to Chand (2019), people are the human
actors who play a part in production of goods and
service delivery and thus influence the buyer's
perceptions: namely, the firm's personnel, the
customer, and other customers in the
environment.
- People are the most important element of any
product, service or experience.
- Remember, customers buy from salespeople who
they like, so the attitude, skills and appearance of all
staff should be taken into consideration when hiring
employees.
- People have an important role in product/ service
delivery, they are relied upon to deliver and maintain
transactional marketing and people play an important
part to have a better relationship with the customers
Only sales representatives get in touch with the customers, not
everyone. But all of them have their own roles to play in the
production, marketing, distribution, and delivery of the products
and services to the customers. Without them, all these other
Ps in the Marketing Mix will not complete a successful
marketing formula.
The word right in this context implies that the qualifications and
skills of the person to occupy the position must match the
specifications and requirements of the job. For example, a
business venture needs a marketer to promote the product in
Central Luzon; therefore, the business owner must hire a
graduate of Marketing or Business Course and not a graduate
of a medical-related course. The technical proficiency must
also be given due consideration.
Finding the right person may also entail cost to the business
because the higher the standards are, the higher the salary
level will be.
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Marketing Mix
Packaging
- is also referred to as "silent salesman" by the
marketing people because they believe that it helps in
accumulating bigger sales and returns (Burks, 2020).
- They are very beneficial to small enterprises because
they only have few people to promote their product
and /or service
- Packaging maintains the freshness and quality of
your product while using vibrant designs to tell your
brand's story.
- It also has the information required by the government
like nutritional facts and warnings that keeps the
consumers safe.
- It also proves further that you have commitment to
transparency and only provide products that are
beneficial to consumers lives.
- The packaging must also be userfriendly. It must be
easy to open, handle, and store.
- Packaging will surely appeal to consumers if it
characterizes something that is significant to them or
symbolizes someone they aim to be. For example,
shoppers who have environmental concerns may
choose product packaged in recycled and/or
recyclable materials. On the other hand, a person
who idolizes someone may select a product because
the packaging includes a photo of his/her idol who
inspires him/her.
Elements of Packaging (MetrixLab, 2020):
Category or product type
- The customer should know if a product is food, non-
food, chemical or etc. It is not good to confuse them
with your packaging.
Brand
- This will help you make your product be known to
many. The name of the product is what the customer
usually remembers.
- is a market concept that outlines what a business
should do to market its product or service to its
customers.
- In positioning, the marketing department creates an
image for the product based in its intended audience.
For example, a manufacturer of a bag may position
his/her brand as a budget friendly brand or the other
way around; a restaurant owner may position his/her
business as a provider of cheap or expensive food.
- The more intense a positioning strategy is, typically,
the more effective the marketing strategy is for a
company. The position of a particular product or
service elevates the efforts in marketing and helps
people to become buyers and even turn them to be
loyal customers in the future.
- There are several positioning strategies according to
Corporate Finance Institute (CFI,2020). A few
examples are positioning by product benefits, price,
quality, and competition.
 perceptual map
- is used to know how people perceive a certain brand.
- The map allows you to identify how competitors are
positioned to identify the opportunities in the
marketplace.
Positioning
- the definition of a certain product in the mind of the
customers.
- The entrepreneur must always describe the product
based from the perspective of the customers. You
must put yourself in their place in assessing the cost,
quality, and variety of the products you offer.
The 4M’s Management

Variant
- The packaging should display the possible options for
the particular product.

Functional benefit(s)
- The packaging should show what the product does.

Reason(s)-to-believe
- The packaging should also present why the consumer
should find the claimed functional benefit credible.

Emotional end-promise or benefit

- The packaging should also exhibit how the functional
benefit fulfills a higher need.

Call-to-action
- The reason why consumers should buy the product
must also be present in the packaging.

Size, weight, content details, etc.

- The information such as stated must be shown for the
consumers to know.

Your packaging should tell the consumer what your product is

and why they should buy it. That's it. Two questions only that
your product packaging design has to answer.

Positioning

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