RECOGNIZE A POTENTIAL MARKET
2 The Societal environment includes the
Entrepreneurial Ideas
The creation of an entrepreneurial idea leads
to the identification of entrepreneurial
opportunities, which in turn results in the
opening of an entrepreneurial venture.
The entrepreneurial process of creating a new
venture is presented in the diagram below.
(Nick L. Aduana, Etrepreneurship in Philippine
Setting for Senior High School, 2017, C&E
publishing page 46, Aduana, 2017).
Entrepreneurial mind frame. This allows the
entrepreneur to see things in a very positive
and optimistic way in the midst of difficult
situation. Being a risk-taker, an entrepreneur
can find solutions when problems arise.
Entrepreneurial heart flame. Entrepreneurs
are driven by passion; they are attracted to
discover satisfaction in the act and process of
discovery. Passion is the great desire of an
entrepreneur to achieve his/her goals.
Entrepreneurial gut game. This refers to the
ability of the entrepreneur of being intuitive.
This also known as intuition. The gut game
also means confidence in one's self and the
firm belief that everything you aspire can be
reached.
Sources of Opportunities
There are many ways to discover
opportunities. Looking at the big picture, some
have noticed the emerging trends and patterns
for business opportunities. While others are
trying to find out their target market. The
following are some sources of opportunities:
1. Changes in the environment
Entrepreneurial ideas arise when changes
happen in the external environment. A person
with an entrepreneurial drive views these
changes positively. External environment
refers to the physical environment, societal
environment, and industry environment where
the business operates.
1.1 The Physical environment includes
a. Climate the weather conditions.
b. Natural resources - such as minerals,
forests, water, and fertile land that occur
in nature and can be used for economic
gain.
c. Wildlife - includes all mammals, birds,
reptiles, fish, etc., that live in the wild.
1.
various forces like
a. Political forces includes all the laws,
rules, and regulations that govern
business practices as well as the
permits, approvals, and licenses
necessary to operate the business.
b. Economic forces - such as income
level and employment rate. c.
Sociocultural forces - customs, lifestyles
and values that
characterize a society.
Technological environment - new
inventions and technology innovations.
1.3 The Industry environment of the
business includes:
a. Competitors
b. Customers
c. Creditors
d. Employees e. Government
f. Suppliers
For example, one factor in the physical
environment that can easily change
is the climate. The temperature is very high
during summer but very low during the rainy
season. An individual with entrepreneurial
drive can be extremely imaginative and
inventive in identifying opportunities. He/she
can venture on a business that responds to the
needs of the people during summer and rainy
season.
2. Technological discovery and
advancement
A person with entrepreneurial interest sees
possibility of business opportunities in any new
discovery or because of the use of latest
technology.
For example, an individual with knowledge in
repair and installation of a machine engine
discovers additional engine parts that
considerably reduce fuel consumption.
PR
3. Government's thrust, programs, and
policies
The priorities, projects, programs, and policies
of the government are also good sources of
ideas.
For example, the use of firecrackers to
celebrate New Year's Eve is strictly prohibited.
People without entrepreneurial interest will
view the ordinance as a plain restriction.
However, for an entrepreneur, it is a business
opportunity to come up with a new product that
will serve as a substitute for firecrackers.
4. People's interest
The interest, hobbies, and preferences of
people are rich sources of entrepreneurial
ideas, like the increasing number of Internet
Cafés at present could lead to the strong
attachment of young people to computers.
5. Past experiences
The expertise and skills developed by a person
who has worked in a particular field may lead
to the opening of a related business enterprise.
For example, an accountant who has learned
the appropriate accounting and management
skills and techniques in a prominent
accounting firm can start his/her business
venture by opening his/her own accounting
firm.
Forces of Competition Model
It is also known as the "five forces of
competition". An industry environment is a
competitive environment. Regardless of what
product or services you have, competition is
always present.
Competition - it is the act or process of trying
to get or win something.
stores.
For example, the prices are lower when there
is a competition among the
These are the five forces competing within the
industry:
•Buyers
•Potential new entrants
•Rivalry among existing firms
•Substitute products
•Supplier
1. Buyers
The buyers are the ones that pay cash in
exchange for your goods and services. One
example is the influence of the price or in the
bargaining strategy. The buyer has a strong
and magnified bargaining power. The threat of
its bargaining power will be less if the following
factors are noticed:
a. There are several suppliers available
in the market. b. The buyer has the
potential for backward integration.
c. The cost of switching the supplier
cost is minimal.
d. The product represents a high
percentage of the buyer's cost.
e. The buyer purchases large portions
of the seller's product or services.
2. Potential New Entrants
A new entrant is defined as companies or
businesses that have the ability to penetrate or
enter into a particular industry. For example, in
the level of capital requirements, if the
business requires huge capital, new entrants
should decline to join the business. This gives
a threat to the business. This can be noticed if
there is the presence of the following factors:
a. Substantial capital requirement
b. Strict government policy
c. Difficulty in accessing distribution
channels
d. Economies of scale
e. High cost of product differentiation
f. High switching cost
3. Rivalry among Existing Firms
Rivalry is a state or situation wherein business
organizations are competing with each other in
a particular market. For example, it depends
on the marketing strategy of your competitor,
like giving freebies and special offers. The
intensity of rivalry among existing firms is
characterized to the following factors:
a. Diversity of rivals
b. Number of competing firms
c. Characteristics of the products or
services
d. Increased capacity
e. Amount of fixed costs
f. Rate of industry growth
4. Substitute Products
Substitute is one that serves the same purpose
another product in the
market. For example, the consumers decide to
use margarine as a substitute for butter. In
case the price of butter increases, preferably
the consumer will gradually switch to
margarine.
A substitute product can give a big threat in the
industry environment if the following factors are
noticed:
a. Switching cost is low
b. Preferences and tastes of the
customers easily change
 c. Product differentiation is highly
noticeable
d. The quality of substitute products
dramatically improves
e. The price of substitute product is
substantially lower
5. Suppliers
The Suppliers are the one that provide
something that is needed in business
operations such as office supplies and
equipment. In an example where supplies and
services being offered is unstable the intensity
of the threat is strong in this kind of the
competitive force in the industry. This can be
noticed if there is the presence of the following
factors:
a. The supplier has the ability for
forward integration
b. Suppliers in the industry are few, but
the sales volume is high
c. Substitute products are not readily
available in the market
d. The switching cost is very high
e. The product or service is unique
RELEVANCE OF ENTREPRENEURSHIP TO
AN ORGANIZATION
1. Development of Managerial Capabilities -
this means that one of the benefits
an entrepreneur gets is to develop his
managerial skills.
2. Creation of Organizations - which means
that because of entrepreneurship many
organizations will exist.
3. Improving Standard of Living - this means
that entrepreneurship can lift up the economic
status of an individual.
4. Means of Economic Development - this
means that not only the life of the entrepreneur
is improved but also the society where the
business is located.
Concept of Entrepreneurship
The word "entrepreneur" was derived from
the French verb enterprendre, which means
"to undertake." This is pinpointing to those
who "undertake" the risk of enterprise. The
enterprise is created by an entrepreneur and
the process is called:
"Entrepreneurship."
Entrepreneurs are innovators. They are willing
to take the risks and generate unique ideas
that can provide profitable solutions to the
needs of the market and the society.
Factors Affecting Entrepreneurship
1. Personality Factors which include:
a. Initiative - doing things even before
being told.
b. Proactive - which means he can
classify opportunities and seize it.
c. Problem Solver - which means he
can retain good relations with other
people.
d. Perseverance - meaning he will
pursue things to get done regardless of
challenges.
e. Persuasion - means that he can
entice people to buy even if they don't
want to.
f. A Planner - he makes plans before
doing things and does not fail to
monitor it.
g. Risk-taker - which means that he is
willing to gamble but he will calculate it
first.
2. Environmental Factors which include
political, climate, legal system,
economic and social conditions and market
situations.
Common Competencies in Entrepreneurship
1. Decisive - an entrepreneur must be
firm in making decisions.
2. Communicator - an entrepreneur
must have a convincing power.
3. Leader - an entrepreneur must have
the charisma to be obeyed by his
employees.
4. Opportunity seeker - an
entrepreneur must have the ability to be
the first to see business chances.
5. Proactive - an entrepreneur can
control a situation by making things
happen or by preparing for possible
future problems.
6. Risk Taker - an entrepreneur has the
courage to pursue business ideas.
7. Innovative - the entrepreneur has big
business ideas and he does not stop
 improving and thinking of new
worthwhile ideas for his business.
Core Competencies in Entrepreneurship
1. Economic and Dynamic Activity -
Entrepreneurship is an economic activity
because it involves the creation and operation
of an enterprise with a view to creating value or
wealth by ensuring optimum utilization of
limited resources.
2. Innovative - The entrepreneur constantly
looks for new ideas, thus he needs
to be creative.
3. Profit Potential - The entrepreneur can be
compensated by his profit coming from the
operation.
4. Risk bearing - The entrepreneur needs to
gamble but wise enough to offset the risk.
Types of Entrepreneurs
1. Innovative Entrepreneurs - They are those
who always make new things by thinking of
new ideas. They have the ability to think
newer, better and more economical ideas.
2. Imitating Entrepreneurs - They are those
who don't create new things but only follow the
ideas of other entrepreneurs.
3. Fabian Entrepreneurs - They are skeptical
about changes to be made in the organization.
They don't initiate but follow only after they are
satisfied.
4. Drone Entrepreneurs - They are those who
live on the labor of others. They are die-hard
conservatives even ready to suffer the loss of
business.
5. Social Entrepreneurs - They are those who
initiate changes and drive social innovation
and transformation in the various fields such as
education, health, human rights, environment
and enterprise development.
Career Opportunities of Entrepreneurship
1. Business Consultant - with the expertise of
in the field of entrepreneurship, he can be a
very good source of advices to other
entrepreneurs and would be business men.
2. Teacher - a graduate of an
entrepreneurship can use his knowledge in
teaching.
3. Researcher - the entrepreneur can be
employed as a researcher by an enterprise.
4. Sales - the entrepreneurship graduate can
apply as a salesman.
5. Business Reporter - the entrepreneur
being expert in the field, can be employed as a
business reporter.
MARKET RESEARCH
Market research - Firms and other business
companies need to understand their service
offerings and their customers to ensure that
their services will be adopted as solutions to
consumer needs. In order for the firms to
recognize the needs of the market or the
customers, they need to conduct market
research.
The Market Research or Marketing
Research Process can be defined as the
process of gathering, analyzing and
interpreting the information about the products
or the services to be offered for sale to the
potential consumers in the market.
There are different ways to collect the data.
The most important methods you can consider
are surveys, focus group discussion and
interviews.
DATA COLLECTION is the most valuable tool
of any type of research study.
Inaccurate data collection may cause
mistakes and ultimately lead to invalid results.
TIPS in GATHERING DATA
• Organize collected data as soon as
it is available
• Know what message you want to
get across and then collect data
that is relevant to the message
• Collect more data
• Create more data
• Regularly run experiments or collect
data
• Challenge your assumptions
• Set reasonable expectations
• Take note of interesting or
significant data
In this lesson, we will consider the
three different data collection techniques –
SURVEY (Questionnaire), INTERVIEW and
FOCUS GROUP DISCUSSION – and
evaluate their suitability under different
circumstances.
SURVEYS are the most common way
to gather primary research with the use of
questionnaires or interview schedule. These
can be done via direct mail, over the phone,
internet (e.g. Google) or email, face-to-face or
on Web (e.g. Skype or Viber).
When designing or constructing your
own research questionnaire, remember the
following guidelines. (Edralin, 2016)
• Keep it simple as possible.
• Make sure it is clearly appealing
and easy to read.
• Cluster or block related questions.
• Move from complex questions to
more specific questions.
• Make sure questions are concise
and easily understood.
• Avoid questions that are difficult to
answer.
• Make sure any response scales
used are consistent with categories
that are mutually exclusive.
INTERVIEW is one of the most reliable
and credible ways of getting relevant
information from target customers. It is
typically done in personal between the
researcher/entrepreneur and a respondent
where the researcher asks pertinent questions
that will give significant pieces of information
about the problem that he will solve. The
interview is also helpful even when the
business has already started because the
customers’ feedback provides the
entrepreneur a glimpse of what the customers
think about the business.
Interviews normally last from 15 to 40
minutes, but they can last longer, depending
on the participants’ interest in the topic.
In a structured interview, the researcher
asks a standard set of questions and nothing
more (Leedy and Ormrod, 2001).
• Personal interviews are the
traditional method of conducting an
interview. It allows the researcher
to establish relationship with
potential participants and therefore
gain their cooperation. It generates
highest response rates in survey
research. They also allow the
researcher to clarify indefinite
answers and when necessary, seek
follow-up information.
• Telephone interviews are less
expensive and less time
consuming, but the disadvantages
are that the response rate is not as
high as the face-to- face interview,
but considerably higher than the
mailed questionnaire.
FOCUS GROUP DISCUSSION (FGD) - is an
excellent method for generating and screening
ideas and concepts. It can be a moderated
group interviews and brainstorming sessions
that provide information on user’s needs and
behaviors.
The following are considerations in the use of
focus group discussions in market research:
• The length of the session is
between 90 and 120 minutes.
• Usually, conduct focus groups
discussion with 8 to 10 participants
per group.
• Assign an expert moderator /
facilitator who can manage group
dynamics.
• Use a semi-structure or open-
format discussion.
• Strive for consistency in the group’s
composition (for example, it may
not be advisable to have business
customers and retail customers in
the same focus group, their needs
are very different).
MARKETING MIX AND BRANDING
Marketing Mix is a set of controllable and
connected variables that a company gathers
to satisfy a customer better than its
competitor. It is also known as the “Ps” in
marketing. Originally, there were only 4Ps but
the model has been continually modified until
it became 7P’s. The original 4 P’s stands for
product, place, price and promotion.
Eventually, three elements have been added,
namely: people, packaging and positioning
to comprise the 7 P’s.

1. PRODUCT
The first P in the Marketing Mix is the
Product. Marketing strategy typically starts
with the product. Marketers can’t plan a
distribution system or set a price if they don’t
know exactly what the product will be offered
to the market.
Product refers to any goods or services that
is produced to meet the consumers’ wants,
tastes and preferences. Examples of goods
include tires, MP3 players, clothing and etc.
Goods can be categorized into business
goods or consumer goods. A buyer of
consumer goods may not have thorough
knowledge of the goods he buys and uses.
Examples of services include hair salons and
accounting firms. Services can be divided
into consumer services, such as hair styling
or professional services, such as engineering
and accounting.
Consumer Goods - The demand for
consumer goods is a 'direct demand'.
Business Goods - The demand for business
goods is a 'derived demand'. It is derived from
the demand for consumer goods, which are
made using the business goods.
2. PLACE
Place is the second P in the Marketing Mix.
Place represents the location where the
buyer and seller exchange goods or services.
It is also called as the distribution channel. It
can include any physical store as well as
virtual stores or online shops on the Internet.
Channel 1 contains two stages between
producer and consumer - a wholesaler and a
retailer. A wholesaler typically buys and
stores large quantities of several producers'
goods and then breaks into bulk deliveries to
supply retailers with smaller quantities. For
small retailers with limited order quantities,
the use of wholesalers makes economic
sense.
Channel 2 contains one intermediary. In
consumer markets, this is typically a retailer.
A retailer is a company that buys products
from a manufacturer or wholesaler and sells
them to end users or customers. In a sense,
a retailer is an intermediary or middleman
that customers use to get products from the
manufacturers.
Channel 3 is called a "direct-marketing"
channel, since it has no intermediary levels.
In this case the manufacturer sells directly to
customers.
3. PRICE
Price is the value of money in exchange for a
product or service. Generally speaking, the
price is the amount or value that a customer
gives up to enjoy the benefits of having or
using a product or service.
4. SALES PROMOTIONS
Sales promotion is any initiative undertaken
by an organization to promote an increase in
sales, usage or trial of a product or service
(i.e., initiatives that are not covered by the
other elements of the marketing
communications or promotions mix).
Sales Promotion Technique
• Free Gifts
There are many ways to utilize this particular
sales promotion technique. A newly opened
store, for example, may offer the first 10
customers free items worth 100 pesos.
• Free Samples
Providing free samples is a technique used
to introduce new products to the marketplace.
Samples give the consumer a chance to see
how well they like a product or try something
they otherwise would not normally buy.
• Free Trial
A free trial is a way for a consumer to try a
new product while eliminating risk. It may be
used when a product is unique to the
marketplace.
• Customer Contests
Contests offer the customer a chance to win
prizes like cash or store merchandise.
• Special Pricing
Special pricing is used to offer consumers a
lower price for a period of time or to purchase
in multiple quantities. For example, a retailer
may offer a product that normally costs 35
pesos at a price of 3-for-100-pesos during the
promotional period.
5. PEOPLE
People - your team, the staff that makes it
happen for you, your audience, and your
advertisers are the people in marketing. This
consist of each person who is involved in the
product or service whether directly or indirectly.
People are the ultimate marketing strategy.
They sell and push the product. People are
one of the most important elements of the
marketing mix today.
6. PACKAGING
Packaging is the sixth P in the Marketing
Mix. Packaging is a silent hero in the
marketing world. Packaging refers to the
outside appearance of a product and how it is
presented to the customers. The best
packaging should be attractive enough and
cost efficient for the customers. Packaging is
highly functional. It is for protection,
containment, information, utility of use and
promotion.
Five Basic Functions of Packaging
1) Protection:
One of the major functions of packaging is to
provide for the effects of time and
environment for the natural and
manufactured products. The protection
function can be divided into some classes.
A. Natural deterioration:
It is caused by the interaction of products with
water, gases and fumes, microbiologic
organisms like bacteria, yeasts and molds,
heat, cold, dryness, contaminants and insects
and rodents.
B. Physical protection:
The packaging is also used for physical
protection, which include improving shock
protection, internal product protection and
reducing shock damage caused from
vibration, snagging, friction and impact.
C. Safety:
A special kind of protective packaging is
required for products that are deemed
harmful to those who transport them or use
them. These products include extremely
inflammable gas and liquid, radioactive
elements, toxic materials etc. The packaging
should also be done so that children could
not easily use or dispose them.
D. Waste reduction:
Packaging also serves to reduce the amount
of waste especially in case of food
distribution.
2) Containment:
This involves merging of unit loads for
shipping. It starts with spots of adhesives on
the individual shippers that stick them
together, straps of steel and plastic, entire
coverings of shrinkable or stretchable plastic
films and paper or corrugated wraps that
surround an entire pallet of product.
There are some special bulk boxes or pallet
bins made from unusually strong corrugated
board or fabricated form plastics or metal, the
method of which depends on the type and
weight of product and its protective needs.
The cargo containers made of aluminum
used to hold many pallet loads of goods can
be transferred to or from ships, trains and
flatbed trucks by giant cranes.
3) Information:
The packaging conveys necessary
information to the consumers. The common
information that packaging provides include
general features of the product, ingredients,
net weight of the contents, name and address
of the manufacturers, maximum retail price
(MRP).
Packaging of medicine and some food
products is required to provide information on
methods of preparations, recipes and serving
ideas, nutritional benefits, and date of
manufacturing, date of expiry, warning
messages and cautionary information.
Sometimes, the color of the packaging itself
provides some information.
4) Utility of use:
The convenience packaging has been
devised for foods, household chemicals,
drugs, adhesives, paints, cosmetics, paper
goods and a host of other products. This type
of packaging includes dispensing devices,
prepackaged hot metals, and disposable
medical packaging.
5) Promotion:
Companies use attractive colors, logos,
symbols and captions to promote the product
that can influence customer purchase
decision.
7. POSITIONING
When a company presents a product or
service in a way that is different from the
competitors, they are said to be “positioning”
it. Positioning refers to a process used by
marketers to create an image in the minds of
a target market.
Solid positioning will allow a single product to
attract different customers for not the same
reasons.
BRANDING
Brand Name is a name, symbol, or other
feature that distinguishes a seller's goods or
services in the marketplace. Your brand is
one of your greatest assets because your
brand is your customers' over-all experience
of your business.
Brand strategy is a long-term design for the
development of a popular brand in order to
achieve the goals and objectives. A well-
defined brand strategy shakes all parts of a
business and is directly linked to customer
needs, wants, emotions, and competitive
surroundings.
Branding is a powerful and sustainable
high-level marketing strategy used to create
or influence a brand. Branding as a strategy
to distinguish products and companies and to
build economic value to both customers and
to brand owners, is described by Pickton and
Broderick in 2001.
Commonly Used Branding Strategies
1) Purpose
"Every brand makes a promise. But in a
market in which customer confidence is little
and budgetary observance is great, it’s not
just making a promise that separates one
brand from another, but having a significant
purpose," (Allen Adamson). How can you
define your business purpose? According to
Business Strategy Insider, purpose can be
viewed in two ways:
a. Functional. This way focuses on the
assessments of success in terms of
fast and profitable reasons. For
example, the purpose of the business
is to make money.
b. Intentional. This way focuses on
fulfillment as it relates to the capability
to generate money and do well in the
world.
2) Consistency
The significance of consistency is to avoid
things that don’t relate to or improve your
brand. Consistency aids to brand recognition,
which fuels customer loyalty.
3) Emotion
There should be an emotional voice,
whispering "Buy me". This means you allow
the customers to have the chance to feel that
they are part of your brand.
You should find ways to connect more
deeply and emotionally with your customers.
Make them feel part of the family and use
emotion to build relationships and promote
brand loyalty.
4) Flexibility
Marketers should remain flexible too in this
rapidly changing world. Consistency targets
at setting the standard for your brand,
flexibility allows you to adjust and differentiate
your approach from your competition.
According to Kevin Budelmann, "Effective
identity programs require sufficient
consistency to be identifiable, but sufficient
variation to keep things fresh and human," so
if your old tactics don't work anymore, don't
be afraid to change. It doesn’t mean it worked
in the past it may still work now.
5) Employee Involvement
It is equally important for your employees to
be well versed in how they communicate with
customers and represent the brand of your
product.
6) Loyalty
Loyalty is an important part of brand
strategy. At the end of the day, the emphasis
on a positive relationship between you and
your existing customers sets the tone for
what potential customers can expect from
doing business with you.

7) Competitive Awareness
Do not be frightened of competition. Take it
as a challenge to improve your branding
strategy and craft a better value in your
brand.