ENTREP REV EXAM SEM2 Q1 BY ROAA ● Synthesis of the entire plan,

highlighting reasons for business

WHAT IS A BUSINESS PLAN FOR? success.
● Guides entrepreneurs through starting or ● Introduction to business
growing a business venture proponents, organizational
● Conducts feasibility studies and assesses capabilities, product/services, and
business potential financial forecasts.
● Attracts potential investors by demonstrating ● Discussion on environmental
business viability and management compliance and capital structure.
competence
● Provides guidance on strategic decisions 4. Business Proponents
during initial stages or periods of growth ● Information on stakeholders
● Acts as a roadmap for achieving business including resource mobilizers,
objectives technology providers, governance,
● Serves entrepreneurs, investors, and and operational teams.
organizational management and staff
5. Target Customers and Value Proposition
● Identification of target customers
and unique value proposition.
● Analysis of market demand, supply,
industry dynamics, and
macro-environmental factors.

6. Product/Service Offering
● Description, evolution, and
justification of offerings.

7. Enterprise Strategy and Delivery System

● Explanation of enterprise strategy
and its implementation through the
CONTENTS OF THE BUSINESS PLAN delivery system.
The contents of a business plan should be structured ● Discussion on input, throughput,
to effectively convey key information to output, and outcomes.
stakeholders. Here's a condensed version:
8. Financial Forecasts
1. Business Concept and Model ● Expected returns, risks, and
● Concise description of the business contingencies.
concept. ● Calculations of financial returns
● Explanation of the business model, and evaluation of business and
addressing revenue generation, cost financial risks.
management, investments, and
financing. 9. Environmental and Regulatory
Compliance
2. Business Goals ● Compliance with laws, regulations,
● Vision, mission, objectives, and permits, and ethical standards.
performance targets.
10. Capital Structure and Financial Offering
3. Executive Summary
 ● Overview of capital structure,
financial offerings, and benefits to
investors, financiers, and partners.
The business plan must effectively communicate
these elements to its target audience to garner support
and investment.
OPPORTUNITY SEEKING
● Entrepreneurs are innovative opportunity
seekers, constantly exploring new ideas.
● They aim to create value by introducing new
products, services, or operational methods.
● Innovation includes product design, feature
enhancements, and technological
advancements.
● Entrepreneurs leverage technology for
efficiency gains and market expansion.
● At their most transformative, entrepreneurs
disrupt established paradigms with
groundbreaking technologies and systems.
Entrepreneurial Mind Frame, Heart Flame, and
Gut Game
Key elements of entrepreneurship:
The macro environment refers to the "big or macro
forces" The macro environment consists of
significant external forces (SPEET: Social, Political,
Economic, Ecological, and Technological) shaping
industries and markets, influencing business conduct,
consumer behaviour, and operational costs.
The macro-environmental sources of opportunities
encompass significant external factors influencing
industries and markets. Here's a breakdown:
1. Socio-Cultural Environment:
● Demographics and cultural
dimensions affecting consumer
behaviour.
● Assessment of social structure,
shifts in status, and behavioural
trends.
2. Political Environment:
● Governance system, laws,
regulations, permits, and licenses
governing business practices.
● Infrastructure, logistics, and
interventions impacting business
costs.

1. Mind Frame: Entrepreneurs see challenges 3. Economic Environment:

as opportunities, turning crises into ● Influence of supply and demand
innovation fuel. forces on income levels, purchasing
power, and industry
2. Heart Flame: Driven by passion, competitiveness.
entrepreneurs persist through setbacks, ● Opportunities arise from economic
nurturing relationships and fostering a growth but are accompanied by
supportive culture. potential threats such as
overbuilding in response to
3. Gut Game: Intuition guides entrepreneurs, demand.
bolstering their confidence to pursue
aspirations with courage and conviction. 4. Ecological Environment:
● Natural resources and ecosystems'
The Many Sources of Opportunities role in habitat preservation.
● Various sources lead to uncovering ● Growing awareness of ecological
opportunities, from observing emerging threats leads to opportunities in
trends to identifying targeted customer green technologies and sustainable
segments and embracing new technologies products.
and knowledge.
5. Technological Environment:
Macro Environmental Sources of Opportunities ● Impact of scientific and
technological advancements on
 product innovation and
obsolescence.
● Need for investment in new
technologies to remain competitive,
including machinery, processes,
and products.
Understanding and navigating these
macro-environmental factors is crucial for businesses
to identify opportunities and mitigate threats in their
operating environments.
Industry Sources of Opportunities
Industry analysis is crucial for identifying
opportunities within a particular market. Here's a
breakdown of industry sources of opportunities:
1. Participants in the Industry:
● Rivals or competitors targeting
similar markets.
● Suppliers providing input to rivals,
including raw materials, machinery,
manpower, and expertise.
● Consumer market segments served
by competitors.
● Substitute products or services.
● Support and enabling industries.
2. Logic of the Industry:
● Understanding how participants
generate profits and the critical
success factors.
● Analysis of industry structure and
dynamics to uncover opportunities.
3. ways of Defining an Industry:
● Product types or functions (e.g.,
computer, beer, fast food, cola
industries).
● Tracing the industry from raw
materials to consumer applications
(product or value-added chain).
4. Product vs. Value-Added Chain:
● Product chain focuses on the
volume produced at each link,
while the value-added chain
emphasizes economic value added.
● Example: The coconut industry
offers various opportunities across
its value chain.
5. Identifying Weak Links and Gaps:
● Discovering opportunities by
strengthening weak links or filling
gaps in the industry chain.
● Assessing the concentration of
bargaining power among industry
players.
6. Detecting Strategic Opportunities:
● Remaining alert to shifts in
industry power dynamics or
changes in industry rules.
● Exploiting windows of
opportunities arising from these
shifts.
Effective industry analysis allows entrepreneurs to
strategically position their ventures within the
market, capitalize on opportunities, and navigate
challenges for long-term success.
Market Sources of Opportunities
● Market opportunities come from
understanding demand, supply, substitutes,
and trends.
● In the fast-food industry, strategies like
"more-for-less" cater to the demand for
affordable, filling meals.
● This creates opportunities for value/combo
meals with increased volume during peak
hours.
● Meeting breakfast demand near workplaces
also presents opportunities.
● However, competitive threats necessitate
strengthening supply chains to withstand
potential price wars.
Micromarket
● Micromarket refers to a specific target
market segment of an enterprise.
● It includes immediate customers who
currently purchase goods or services from
the enterprise and its competitors.
● Micromarket entails a clearly defined
location or customer group served by the
enterprise.
● Segmentation is crucial for understanding
varying preferences within micromarkets.
● Observing behaviours within micro markets
can reveal opportunities for tailored services
or products.
Consumer Preferences, Piques, and Perceptions
1. Preferences: Reflect the tastes of specific
groups, influenced by factors like age,
culture, and status. For instance, trends in
clothing, food, music, and movies.
2. Dislikes: Represent irritations or frustrations
experienced by customers. Entrepreneurs
can explore opportunities to address these
dislikes.
3. Perception: Consumer perception of a
product can change, offering opportunities
for entrepreneurs. For example, Listerine
mouthwash transitioned from a surgical
antiseptic to a consumer product.
4. winning the Battle for the Customer's
Mind: Generating awareness, arousing
interest, facilitating product evaluation, and
fostering brand loyalty are essential steps.
Retaining customers ensures a larger share
of their spending over time.
Other Sources of Opportunities
Entrepreneurs discover opportunities from
unexpected successes or failures, their skills or
hobbies, and new knowledge or technology.
● Customer preferences evolve, creating
business opportunities:
- Rise of sugar-free products reflects
a health-conscious shift.
- Satellite government services
enhance convenience.
● Winning over customers involves battles for
mind, heart, and wallet.
● Long-lasting products foster loyalty:
- Jollibee's success illustrates brand
loyalty among Filipinos.
● Shaping consumer perceptions creates
opportunities:
- Fear-based marketing influences
product choices.
● New inventions and systems revolutionize
industries:
- Laparoscopy replaces open surgery
in medicine.
● Recognizing personal preferences drives
ventures:
- Culinary schools cater to aspiring
chefs and entrepreneurs.
● Unexpected developments open doors for
entrepreneurs:
- CCTV footage's legal significance
creates security industry
opportunities.
OPPORTUNITY SCREENING
Opportunity Screening is a crucial step following
opportunity seeking, where entrepreneurs narrow
down a list of promising opportunities for detailed
scrutiny. The process begins with a personal
evaluation: The entrepreneur considers preferences
and capabilities by asking three fundamental
questions:
1. Do I have the determination to see this
opportunity through to fruition?
2. Am I willing to invest all my resources -
time, effort, and money - to ensure the
success of this opportunity, even if it means
sacrificing my current lifestyle and enduring
emotional hardships?
3. Will I commit to forgoing my usual
comforts to excel in this business
opportunity?
The 12 Rs of Opportunity Screening involves
assessing various aspects of an opportunity:
 1. Relevance to vision, mission, and objectives.
2. Resonance to values.
3. Reinforcement of Entrepreneurial Interests.
4. Revenues potential.
5. Responsiveness to customer needs.
6. Reach for expansion.
7. Range of offerings.
8. Revolutionary Impact.
9. Returns on investment.
10. Relative Ease of Implementation.
11. Resources Required.
12. Risks involved.
Quantifying and forming these criteria into a matrix
can help entrepreneurs solidify evidence supporting
their chosen opportunities.
The Pre-Feasibility Study
The Opportunity Screening matrix helps narrow
down multiple opportunities to one or two most
attractive options. The subsequent step involves a
pre-feasibility study to gauge viability. Key factors
considered include:
● Market potential and prospects: Estimating
potential customers and focusing on relevant
demographics.
● Availability and suitability of technology.
● Project investment and detailed cost
estimates.
● Financial forecast to determine feasibility.
Market Potential and Prospects
● Market potential is assessed by estimating
the number of potential customers interested
in a product or service.
● Data from government sources, industry
associations, and research firms are utilized.
● Differentiation is crucial in essential needs
markets.
● Factors influencing customer choices
include purchasing power, accessibility,
preferences, demographics, and more.
● Market estimation relies on demographic
segmentation such as income, age, gender,
education level, and proximity.
● In a pre-feasibility study, quantifying market
potential based on these factors is essential.
Segmenting the Market
● Segment the market by basic demographics
like age, gender, location, and income. Use
online statistics for general insights and
delve deeper into psychological profiles and
lifestyle preferences. Conduct field research
including surveys, focus groups, interviews,
and observations for firsthand insights.
Assessing Competition
● Market potential is influenced by the level
of competition in the target area.
Entrepreneurs may choose to avoid saturated
markets or opt for them to gain visibility and
growth, but this carries risks without a
superior product. Assessing competitors'
strengths and weaknesses informs strategy.
If unable to compete, entrepreneurs may
consider different locations or target
segments, or improve their offerings.
Estimating Market Share and Sales
● After estimating the potential target market,
the entrepreneur assesses the achievable
market share, starting conservatively unless
possessing a notably superior product or
service. In a pre-feasibility study,
systematically quantify market potential by
defining the desired coverage and
identifying broad segments. Evaluate
competitors' dominance, saturation, and
bargaining power. Determine desired market
share and forecast sales based on volume
and price.
Technology Assessment and Operations Viability
To get the enterprise going, the entrepreneur must go
through the intricacies of detailing the operations that
would be required by the business, which also
includes technology assessment. By going through
this process, the entrepreneur would be able to
determine whether the product or service offering
will meet customer demand or not. At least four
target customer expectations are affecting the scale
and complexity of an enterprise's operations:
1. Quantities demanded. This would determine
the needed capacity of operations.
2. Quality specifications demanded. This
would dictate the following: (a) quality of
input or raw materials; (b) quality assurance
 process in transforming input to output; (c)
quality output that meets the operations, and
standards set; and (d) quality outcomes for
the customers who will be looking for
specific results.
3. Delivery expectations. Knowing how much,
how frequently, and when to deliver to
customers.
4. Price expectations. The selling price of the
product or service would be evaluated by the
customers according to the value they would
receive (in terms of quality, delivery, and
quantity) and this value-added should be
matched against competitors.
Investment Requirements and
Production/Servicing Costs
Entrepreneurs face the challenge of assessing startup
costs, considering both technology and operational
requirements. Three key investments include:
1. Pre-Operating Costs: Covers preparatory
expenses like feasibility studies and market
research.
2. Production/Service Facilities Investment:
Long-term commitments for infrastructure
and equipment.
3. Working Capital Investment: Cash reserves
for ongoing operational expenses such as
salaries and inventory management.
In effect, this part of the pre-feasibility study asks
two questions:
1. Do I have enough resources to cover the
necessary investments?
2. Would my sales estimates be significantly
higher than my monthly production/ service
costs to produce profits?
Financial Forecasts and Determination of
Financial Feasibility
Financial Viability Analysis
After initial study phases, entrepreneurs craft
financial forecasts to assess enterprise feasibility.
These forecasts predict monetary transactions and
determine viability.
Forecasting involves income, balance sheet, cash
flow, and funds flow statements. Marketing strategies
drive revenue projections, while operational plans
inform cost estimates. Assets and financing translate
into balance sheet forecasts.
Simplified focus will be on income and balance sheet
statements.
Conclusion:
A business plan guides entrepreneurs through starting
or expanding ventures, conducting feasibility studies,
attracting investors, and providing strategic direction.
Structured sections such as business concepts, goals,
and financial forecasts offer a comprehensive view of
the venture's potential. Opportunity screening and
pre-feasibility studies help evaluate market potential
and operational viability, while financial viability
analysis assesses sustainability through income and
balance sheet statements. Ultimately,
entrepreneurship requires vision, determination, and
strategic planning for long-term success.
Page 3-28
Market Research
● Entrepreneur, know thy market well! This
constant reminder is crucial for success.
Efforts to deeply understand the target
market enable entrepreneurs to identify
customer needs, reach them effectively, and
excel in their endeavours. Conducting
thorough market research is the key to
unlocking these opportunities.
Basic Questions In Market Research
1. Why: Market research determines consumer
behaviour, market trends, and competitive
landscape, enabling informed
decision-making on product development
and marketing strategies.
2. What: Scope and limitations are defined by
budget, time, and research objectives,
ensuring relevance and effectiveness.\
3. Which: Focuses on the market segment
targeted by the entrepreneur, guiding
 product/service customisation and marketing ● A Focus Group Discussion (FGD) is a
efforts. qualitative research method and data
4. Who: Involves selecting participants from collection technique in which a selected
the target market segment to gather valuable group of people discusses a given topic or
insights. issue in-depth, facilitated by a professional,
5. When: Timing is crucial, especially for external moderator.
time-constrained markets, influencing ● FGD can be used to address substantive
consumer behaviour and demand. issues such as
6. Where: Location-specific factors are - Understanding consumers'
considered, aligning research with the target perceptions, preferences, and
market's geographic spread and accessibility. behaviour concerning a product
7. How: Select the appropriate category;
methodology—surveys, focus groups, - obtaining impressions on new
etc.—based on research objectives, product concepts
audience, and available resources. - generating new ideas about older
products;
Market Research Methodologies - developing creative concepts and
● Good market research is key to smart copy material for advertisements;
business decisions. Knowing your market - Securing price impressions; and
well helps target customers, position - obtaining preliminary consumer
products, promote brands, set prices, and reaction to specific marketing
pinpoint locations. No one wants to invest in programs;
unknown markets. Using scientific
approaches in market research Observation Technique
methodologies helps gather crucial ● Observation is the best way to capture
information, empowering entrepreneurs to customer behaviour naturally by silently
make wise choices in their business journey. watching daily activities like purchasing and
Sales product use, providing valuable insights
without direct interaction.
Data Mining
● Data mining is searching and analyzing a These observations must be documented and tallied
large batch of raw data to identify patterns for proper analysis later on. Before observing, ensure
and extract useful information. Companies the following conditions are met:
use data mining software to learn more 1. Observable or Inferable: Choose
about their customers. It can help them to observation when behaviour can be directly
develop more effective marketing strategies, observed or inferred, avoiding intrusive
increase sales, and decrease costs situations.
2. Sensitive Subjects: Opt for detached
Three Commonly used graphs (Graphs shoes visual observation in sensitive matters, such as
patterns) election behaviours, where respondents may
● Histogram (or Bar graph): proportional not openly admit certain actions.
width to range, proportional height to 3. Repetitive and Predictable: Use
number of items falling observation for behaviours that are
● Frequency Polygon: Marking the repetitive, frequent, or predictable, such as
frequencies studying customers' buying patterns for
● Pie Chart: circular graph commonly purchased items like canned
goods.
Focus Group Discussion 4. Short Duration Focus: Employ observation
for short-duration behaviours, like studying
 customers' decision-making in a fast-food
setting, where the process takes around 10
minutes.
2 types of observation techniques
Human Observation:
● Broad data category collected through direct
observation of human behaviours, actions,
characteristics, responses, and experiences.
Mechanical Observation:
● Involves the use of machines to collect and
interpret data. While technological
advancements offer various data capture
methods, they can be costly.
Customer Profiling
METHODS OF CUSTOMER PROFILING
Demographics
- Age
- Income Classes; Income levels determine
the purchasing power of customers. Usually,
the customers are classified according to the
following income classes:
1. Class A, the high-income class
2. Class B, the upper-middle-income
class
3. Class C, the middle-income class
4. Class D, the lower middle-income
class
5. Class E, the low-income class
- Ethnic Backgrounds and Religious
Beliefs: Impact cultural beliefs regarding
food preferences, spending habits, and levels
of conservatism or progressiveness.
- Social Classes and Reference Groups:
Influence acceptable or unacceptable
behaviour, including the influence of family,
friends, neighbours, coworkers, and societal
affiliations.
- Occupations: Determine purchasing
preferences based on professional roles such
as factory foremen, doctors, taxi drivers,
nurses, and teachers.
- Domiciles or Habitats: Define and limit
choices available to customers based on
their areas of residence and environmental
surroundings.
Psychographics:
● Defines customer motivations, perceptions,
preferences, and lifestyle.
● Motivations include physiological and
psychological needs and wants.
● Perception influences how individuals
interpret information.
● Preferences are shaped by genetics,
environment, experience, exposure, and
expectations.
● Lifestyle classifications reflect consumer
values and behavioural characteristics.
Technographics
● When entrepreneurs classify customers
according to their level of expertise
● Beginners, Regulars, Professionals
Application of customer profiling
● There are two main ways that entrepreneurs
use customer profiling in their business
● DEVELOPING & TO TEST OUT
- Customers who are most attracted
to it are profiled and then
entrepreneurs find out how big the
market is and how they can exploit
it for profits.
● PROFILING TO CUSTOMERS NEEDS
AND WANTS
- Entrepreneurs choose customer
groups with the best potential in the
given industry and develop
products to match them
Market Aggregation
 ● The opposite of market segmentation
wherein entrepreneurs aim to appeal to a
broader market through commodities
Market Segmentation
● Entrepreneurs find customers with similar
needs, willingness and ability to pay for
products and group them into segments
which can be further divided into smaller
segments. This allows them to produce
products which are specialized for each
segment.
Market Mapping
● This is the grouping of customers and
products according to certain market
variables, using a combination of
psychographics, demographics, and
technographics to create a map or overview
of the target demographic.
LET THE MARKET KNOW YOU BETTER
- Marketing aims to acquire and retain
customers, utilizing strategies to capture
market share and outperform competitors.
The marketing function, summarized in the
seven Ps (Positioning, Product, Packaging,
Place, People, Promotion, and Price), serves
as a comprehensive framework for engaging
with customers and gaining market traction.
Positioning:
- Enterprise perspective- scans the market
- Competetive Perspective- distinguishes
itself from competitors.
- Involves aligning with customer needs,
differentiating from competitors, and
shaping customer perception.
- Latitude (what's important to customers
pov) and longitude (attributes of
competitors) dimensions map out market
preferences and competitor offerings,
guiding strategic positioning decisions.
- Enterprises assess their Main Value
Proposition (MVP) relative to competitors,
ensuring alignment across all marketing
elements.
- Branding reinforces positioning, creating
distinct identities and associations in
consumers' minds.
Product:
- Products satisfy customer needs and produce
expected results, often identified through
brand names.
- Four product types include breakthrough,
differentiated, copycat, and niche products,
each targeting specific market segments.
Packaging:
- Packaging serves multiple functions,
including product identification,
differentiation, protection, and
environmental sustainability.
- Innovative packaging can enhance product
value and consumer experience, contributing
to brand recognition and loyalty.
- Packaging extends beyond physical
containers to encompass bundled products,
service offerings, and sales terms.
Place
- "Location. Location. Location." This is the
often-recited mantra of salespeople who
want to have the best access to their
customers. Although finding a good location
proves to be challenging, even more
challenging is maximizing the potential of
that location.
Initial Location Screening: in finding a good
location, one needs to consider the following;
1. The number of customers residing or
working in the area, and the number of
customers who frequently pass through the
area.
2. The density or number of customers per
unit area.
3. The access routes to alternative locations
and their traffic count in those routes.
4. The buying habits of customers or where
they buy, at what time and how frequently.
5. Locational features such as parking spaces,
foot access, creature comforts, and the like.
Considering the Price of Location:
1. Cost Considerations: Evaluate expenses
related to buying or renting, renovating, and
operating the location.
2. Customer Metrics: Assess customer volume,
drop-in rates, and sales conversion ratios to
gauge potential revenue.
3. Revenue Projection: Estimate revenues
based on expected sales volume, product
mix, and pricing strategy.
4. Profits
Final Location Decision Factors:
1. Image and Location Conditions: Consider
the physical appearance, sanitation, safety,
and reputation of the location.
2. Fit to Target Customers: Ensure alignment
between the location's typical customer
demographic and the entrepreneur's target
market.
3. Competitor Clustering: Assess the
presence of competitor establishments and
their potential impact on drawing customers
to the location.
4. Future Area Development: Monitor signs
of future development, such as construction
projects or new shopping centres, which
may influence the area's attractiveness.
5. Fiscal and Regulatory Factors: Consider
fiscal and regulatory requirements, including
tax rates, governance quality, infrastructure,
and public services, in selecting the location.
Relevant Location Drivers:
1. Physical Proximity to Target Market:
Ideal locations should be easily accessible
from home or workplace, although
proximity may vary depending on the nature
of the business.
2. Customer Traffic Flow: Analyze the daily
volume of people and vehicles passing
through, as well as peak and slow hours, to
gauge potential foot traffic.
3. Industry Clustering: Consider the benefits
of locating near competitors to draw a larger
market, while also recognizing the
challenges of increased competition.
4. Convergence of Multiple Industries:
Evaluate locations where various industries
intersect, such as central business districts or
shopping malls, which attract diverse
customer segments.
5. Population Concentrations: Focus on areas
with high population densities, as they offer
greater opportunities for meeting diverse
needs and wants.
6. Activity Hubs: Explore locations near large
schools, high-rise buildings, transport
terminals, and entertainment centres, which
generate high levels of activity and demand.
7. Growth Potential: Seek emerging areas for
expansion, especially in saturated markets,
to capture early customers and capitalize on
growth opportunities.
8. Business Climate: Prefer locations with
favourable economic growth, political
stability, social services, infrastructure,
utilities, transportation, skilled labour force,
low crime rates, fiscal incentives, and
trusted governance.
9. Cost of Doing Business: Industrial
establishments prioritize locations with
lower operational and production costs,
often found outside main population centres
but with necessary amenities provided by
the government.
Comparative Location Analysis
● Entrepreneurs often assess potential
locations by comparing them to similar ones
with the same features and tenant mix.
These preferred locations attract competitors
and offer valuable insights for entrepreneurs
through keen observation.
Geography and Atmosphere Determinants
● Geography and atmosphere play crucial
roles in determining the suitability of a
location for selling a product or service.
Within each of these determinants, there are
contrasting qualities that present dilemmas
for entrepreneurs. Let's delve into these
determinants to understand the tensions they
create:
Geography determinant:
1. Concentration versus Destination
2. Access versus Abundance
3. Clustered versus Dispersed
4. Developed versus Underdeveloped
5. Physical versus Virtual
6. Upscale versus Downscale
● Entrepreneurs prefer locations with high
customer concentrations like malls, while
modern transportation has popularized
destination places.
● Access to a location is vital, with
convenience stores offering limited options
compared to larger malls.
● Clustering competitors provides variety,
while dispersed competitors may dominate
certain markets.
● Choosing between developed and
underdeveloped areas presents cost and
growth dilemmas.
● The internet has introduced virtual
marketplaces, lacking tactile experiences.
● Choosing between upscale and downscale
places presents a tension between targeting
affluent customers or the masses.
● For the atmosphere determinant, there are
five decision tensions:
1. Formal versus Informal
2. Exclusive versus Public
3. Conservative versus Adventurous
4. Aesthetics versus Functionality
5. Minimalist versus Maximalist.
● These tensions offer choices for marketing
strategies, depending on the enterprise's
positioning in the marketplace.
People
● People are instrumental in driving marketing
strategies and sales efforts. They serve as the
direct interface between the enterprise and
its market, playing key roles at various
levels of the marketing process.
Role of People in Marketing:
- Market Research and Strategy
Development: People within the
organization conduct market and consumer
research to inform product development and
marketing strategies.
- Marketing Planning and Implementation:
They devise marketing plans and programs
that translate into specific elements of the
marketing mix.
- Customer Interaction and Sales: People
engage in contacting, reaching, and
convincing customers to purchase products
or services.
Levels of Marketing Efforts Organized by People:
1. Creating Customer Awareness:
Generating awareness about the product or
service among the target audience.
2. Arousing Customer Interest: Sparking
interest and curiosity among potential
customers.
3. Educating Customers: Providing
information and guidance to customers as
they evaluate their buying choices.
4. Closing the Sale: Ensuring that products are
available, adequate, acceptable, and
affordable to facilitate successful purchases.
Modalities for Promoting and Educating
Customers:
- Outsourcing: Utilizing external agencies
like advertising firms, events management
companies, and call centres.
- In-house Capabilities: Building internal
teams for market research, brand
management, sales, and public relations.
- Collaboration and Partnerships: Forming
alliances with distributors, dealers, industry
associations, and other stakeholders.
Customer Evaluation Process:
- Initial Process: Comparing product features
and likely outcomes through methods like
window shopping, internet browsing, and
collecting brochures.
- Mid Process: Involving professional
evaluations, testimonials, and observations
of others using the product or service.
- Final Process: Conducting taste tests,
physical demos, free trials, and offering
money-back guarantees to finalize purchase
decisions.
 - Cost Recovery
Promotion - Subsidy Pricing
● Promotion involves explicit communication - Marginal Pricing
strategies aimed at eliciting patronage,
loyalty, and support from customers and Pricing Strategies in Practice:
other stakeholders. It encompasses direct - Profit, Revenue, and Market Share
communication efforts such as advertising, Maximization: Determining optimal price points
public relations campaigns, and promotional to maximize profits, revenues, or market share.
- Premium Pricing: Charging higher prices to
activities, as well as indirect communication
reflect superior quality or exclusivity.
through product quality, packaging, and
- Low Pricing: Setting competitive prices to
service. penetrate markets or clear excess inventory.
- Cost Recovery Pricing: Pricing products to
Key Factors for Effective Promotion: cover production costs and reinvest sales
- Credibility of the Communicator: proceeds.
Building trust and credibility with the target - Promotional Pricing: Offering discounted prices
audience. for new products or loyal customers.
- Message and Medium: Crafting impactful - Regional Pricing: Adjusting prices based on
geographical variations in costs and demand.
messages tailored to the audience and
selecting appropriate communication
CONCLUSION
channels.
● Marketing, summarized by the seven Ps, covers
- Receptiveness of the Audience:
customer alignment, product categorization,
Understanding the audience's needs, value enhancement, location selection, customer
preferences, and decision-making processes. engagement, communication strategies, and
pricing. Effective implementation leads to
Tailored Promotion Strategies: success in connecting with the target market.
- Narrow Market Coverage: For localized
businesses, focus on targeted promotion
efforts such as neighbourhood flyers and
house-to-house campaigns.
- Niche Markets: Utilize specialized
channels like trade magazines and trade
shows to reach exclusive audiences.
- Mass Markets: Employ broader strategies
including electronic mail, websites, radio
broadcasts, and mass media advertising to
reach larger audiences.

- Price-pricing strategies are essential for

achieving business objectives, with price
setting influenced by factors such as product
quality, brand image, and market dynamics.

Key Pricing Objectives:

- profit Maximization
- Revenue Maximization
- Market Share Maximization
- Prestige or Quality Leadership
- Penetration, Survival, or Liquidation
- Scarcity Pricing or Market Skimming