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Lesson 1  1st Semester    Agents of Change

“What is Entrepreneurship?”  entrepreneurs are innovation champions.
ENTREPRENEURSHIP They see opportunities in hopeless and
 is a proactive process of developing a business complex situation. They are enthused to
venture to make a profit. It involves seeking improve and develop new products and
opportunities for a market, establishing and services and introduce them to the market.
operating a business out of the opportunity, and  Sociable
assessing its risks and rewards through close  soft skills are one of the most important
monitoring of the operations. competencies of entrepreneurs as these
establish the relationship with the most
 Entre – to undertake/take risk
important assets of the company, its people
Prende – in between business
and its customers.
ENTREPRENEUR  Decisive
 is an individual who creates new business,  entrepreneurs always have a decision about
bearing most of the risks and enjoying most of the their business. They do not leave an issue
rewards. The entrepreneur is commonly seen as unsolved without a disposition.
an innovator, a source of new ideas, goods,
 Innovative
services, and business or procedures.
 the minds of entrepreneurs are rich with big
FIVE LEVELS OF ENTREPRENEURSHIP ideas that can add value to their existing
1. The Self-Employed – working for oneself/ owner business or could become a game changer in
________________ of a business the industry or business.
2. The Manager – hires assistant  Risk Takers
3. The Leader – instruct employees to do the job  entrepreneurs will not be successful if they do
4. The Investor – invest in business ventures not take risks. By taking risks, entrepreneurs
5. The True Entrepreneur – gives seminar and do not just grab opportunities left and right;
_________________ lectures to the people they have to take into consideration the
____________________ who wants to start a potential various threats they may encounter.
___________________ business.
 Opportunity Seekers
THE TRUE ENTREPRENEUR USES A  entrepreneurs have a talent for recognizing
FOUR-STEP APPROACH TO THINKING: an opportunity even by using the macrolevel
1. Idealization of dream data only.
2. Visualization of goals  Networkers
3. Verbalization of the vision  a networker knows the key people to connect
4. Materialization of the dream with. Networking can be a very intimidating
task, for it takes a lot of guts to pull it off.
TYPES OF ENTREPRENENUR
 Balanced
 Technopreneur – solve problems and create
 the minds of entrepreneurs should have a
_____________ __ innovative products using
balance between the analytical and the
_______________ technology.
creative side. Their brains are always playing
 Social Entrepreneur – organization in society (run with “unique ideas” that no one has ever
__________________ n for a cause) thought of yet.
 Specialists
 Intrapreneur – working inside the company (web  entrepreneurs are experts in their chosen
_____________ developer, web designer) business. They are tactical and are very keen
with details.
 Extrapreneur – works outside the company (do
 Problem Solvers
____________ marketing strategy, find a
 entrepreneurs possess critical skills and
______________ partnership from other company)
looking at problems as challenges or puzzles
COMMON AND CORE COMPETENCIES IN that they need to solve.
ENTREPRENEURSHIP  Leaders
 Proactive  Risk Takers  successful entrepreneur always have that
 Agents of Change  Opportunity Seeker heart of a leader.
 Sociable  Networkers  Communicators
 Decisive  Balanced  entrepreneurs know how to use all forms of
 Innovative communication to effectively share ideas and
address certain concerns with their customer
 Proactive or employees.
 have solution to problem during business
venture.

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Lesson 2  1st Semester    it involves the development of new ideas from
“Recognizing the Potential Market” various sources as follows:
THE ENTREPRENEURIAL PROCESS  Changes in the environment
1. Opportunity Spotting and Assessment  External/Macroenvironment
2. Developing a Business Plan  Internal/Microenvironment
3. Determining the Capital Needed
4. Running the Business  Technological discovery and advancement
 Government’s thrust, programs, and policies
SCANNING THE MARKETING ENVIRONMENT
- It is the starting point of any venture that involves  People’s interests
understanding and knowing the intricacies of the  Past experiences
whole environment.
- through environmental scanning, entrepreneur EXTERNAL / MACROENVIRONMENT
can recognize various opportunities and at the - it involves the larger societal forces that influence
same time understand thoroughly the arena the microenvironment.
where the future business will operate.
a. PESTEL – Political, Economic, Socio-cultural,
IMPORTANCE OF ENVIRONMENTAL SCANNING ccccccccccTechnological, Ecological, Legal
- It clearly portrays the trends, activities, and
b. Industry Environment – Government,
development happening both in the macro and
ccccccccccccccccccSuppliers, Customers,
micro environment including the interrelated
ccccccccccccccccccCompetitors, Employees,
relationships between the various forces in the
ccccccccccccccccccCreditors
environment.
- It identifies the expected threats and opportunities PESTEL
existing in the environment.
a1. Political Factors
- It points out the possible factors that will
- are mostly induced by government policies
determine the success of the business venture.
and administrations, which can have a strong
- It helps define the future path of the business. effect in the entrepreneur’s business.
- It assists in the formulation of the most
a2. Economic Factors
appropriate business strategies.
- are factors which are primarily caused by
GENERAL RULE: changes or movements in the Philippine
economy that have direct or indirect effects
“Find the opportunity first before coming up with a on the entrepreneurial venture.
new product or service in the future”.
s3. Socio-cultural Factors
SEEKING, SCREENING, and SEIZING
- represent a general view of a locality’s
3S of Opportunity Spotting and Assessment traditions, customs, beliefs, norms, and
- is the framework that most of the promising perceptions.
entrepreneurs use to finally come up with the
ultimate product or service suited for specific s4. Technological Factors
opportunity. - basically refer to the trends and
developments in computer and information
Opportunity technology that have impact on business.
- is an entrepreneur’s business idea that can
a5. Environmental/Ecological Factors
potentially become a commercial product or
- should be given much importance especially
service in the future.
when the world has already suffered severely
from a human-induced calamities.
S1: SEEKING THE OPPORTUNITY
Opportunity Seeking a6. Legal Factors
- is the first step and is the most difficult - are the elements and bodies that are directly
process of all due to the number of options involved in the legislation and interpretation of
that the entrepreneur will have to choose laws and ordinances directly affecting the
from. business.

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Industry Environment INTERNAL / MICROENVIRONMENT

- refers to the environment within the business.
b1. Government
- refers to the system or institution that handles a. Business Resources
the affairs of a particular country. - are assets or properties owned or controlled by the
business.
Five Types/Classifications of Government: - can either be tangible or intangible.
 democracy
 autocracy Tangible Resources – are assets of the business
 republic that have physical appearance and form.
 monarchy  Current Resources – are used, applied, or
 dictatorship consumed within a short period or one year.
b2. Suppliers  Noncurrent or Fixed Resources – are
- refer to individual persons or companies that properties whose usefulness or benefits extend
provide the required materials, parts, or beyond one year.
services to the business.
Intangible Resources – are assets of the business
Criteria of Selecting the Supplier: that do not have physical appearance of form.
 quality of the goods or services  A business without resources cannot exist and a
 terms of payment business with insufficient resources cannot sustain
 stability the operation.
 ability to respond to urgent needs
 proximity of the location
b. Business Culture
b3. Customers - is a collection of values, beliefs, principles, and
- are the buyers of goods or services produced expectations learned and shared by employees,
or rendered by the business. founders, stakeholders, and members of the
- it must constantly evaluate and study the management.
behaviour, tastes, preferences, inclinations, - reflects the overall image of the business to the
and even future activities of the customers. community.
- reflects the identity of the employees but not
b4. Competitors dependent on the culture of dominant employees in
- are the forces existing in the industry the business.
environment that produce, sell, or render
products or services which are similar to those
of the business.  Types of Cultures operating in the Internal Environment:
 Culture of the Business or Organization
- Direct Competitors – produce and sell  Individual Culture of the Employees
ccccccccccccccccccccsimilar or services.
 The entrepreneur has the primary responsibility to handle
- Indirect Competitors – produce and sell the level of cultural acceptance and cultural integration
ccccccccccccccccccccc substitute products. among Filipino workers in the business.
b5. Employees  Cultural Acceptance – refers to the degree by which
- are the workers of the business who are highly cccccccccccccccccccc the employees accept the
responsible for the production of goods or ccccccccccccccccccccculture of the unit or business.
delivery or services to the customers.  Cultural Integration – refers to the degree by which
- they help ensure the quality and quantity of ccccccccccccccccccccall units across the business
products or services provided to the ccccccccccccccccccc accept and share a common
customers. ccccccccccccccccccc culture.
- they are the backbone of the business.

b6. Creditors
- refer to banks, financial institutions, and c. Business Structure
financial intermediaries engaged in the lending - refers to the formal organizational arrangement of the
of money to the borrower usually for a free or business in terms of hierarchy of positions, flow of
charge in the form of interest. communication, relationship of functional areas, and
production and marketing processes.
- the complexity of the business structure depends on
the type of business, nature of operation, capital base
requirement, leadership style, and scope of operation.

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METHODS OF GENERATING IDEAS  Opportunity Screening Matrix (OSM) aims to
1. Focused Group Discussion (FGD) assist entrepreneur concretize the evidence that the
- is conducted by an entrepreneur with the chosen opportunity (or opportunities) is well worth
assistance of a moderator to gather the views pursuing.
of selected consumers on certain issues
related to their buying behavior. The 12 Rs of Opportunity Screening
 Relevance to vision, mission, and objectives of
2. Brainstorming the entrepreneur.
- is an activity similar to an FGD, that allows the  Resonance to values.
participants to share creative ideas using the  Reinforcement of Entrepreneurial Interests
following rules: (a) no destructive criticism or  Revenues – determine the sales potential of the
judgement is allowed; (b) wider ideas are products or services you want to offer.
accepted; (c) more ideas are preferred; and  Responsiveness to customer needs and wants.
(d) improvement of others’ ideas is allowed. In
 Reach – attainment of rapid growth.
short, brainstorming is a dun discussion with
 Range – potentially lead to a wide range of
lenient rules.
possible product or service offerings.
3. Brainwriting or Internet brainstorming  Revolutionary Impact – “next big thing” or a
- is exactly the same as brainstorming except game-changer that will revolutionize the industry.
that the channel used is not face-to-face, but  Returns – high returns on investment
in writing or online.  Relative Ease of Implementation – easy to
implement.
4. Problem inventory analysis  Resources Required – fewer resources is better
- is similar to the FGD except that the than those requiring more resources.
participants are already given an inventory of  Risks
product or service problems.
- participants will just identify from the list given
the compelling problem(s) of a potential
product or service instead of generating the
ideas from them.

S2: SCREENING THE OPPORTUNITY

Opportunity Screening
- is the process of cautiously selecting the best
opportunity.

 the selection will depend on the

entrepreneur’s internal intent and the external
intent which will address the compelling
needs of the target market.

 Risk Appetite – refers to the entrepreneur’s

cccccccccccccc tolerance business risks.

 The crafting of a business plan starts only

when entrepreneurs already said no to many  *Rating x Weight = Score
opportunities and said yes to one forceful  Note: Criteria numbers 1 to 10 are positive
opportunity, to which they will devote their indicators; meaning, the more of them, the better.
time and resources.  Criteria number 11 and 12 are negative indicators;
meaning the less of them, the better.
 Hence, the rating system is reversed for the
The entrepreneur should say no to an opportunity if it
negative indicators.
does not contain any of these business opportunity
 Weight will range from 1 to 4 depending on the
elements:
weight or importance of the criteria.

 Has superior value to customers

 Solves a compelling problem, issue, a need,
or a want
 Is a potential cash cow
 Matches with the entrepreneur’s skills,
resources, and risk appetite

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S3: SEIZING THE OPPORTUNITY  The last process, called the seizing process,
Opportunity Seizing involves refining and developing this opportunity.
The refining process is called product or service
- is the last step in opportunity spotting and
planning and development process.
assessment.
- the “pushing through” with the chosen
opportunity. Four (4) stages:

Innovation 1. Idea stage – in this stage, the entrepreneur

cccccccccccc determines what are the feasible
- is the process of positively improving an cccccccccccc products and/or services that will
existing product or service. cccccccccccc perfectly suit the opportunity.
- it is a key driver for economic growth.
 Market evaluation
 Assessment of the value of new
products/services
Three (3) types of Innovations according to the
 Elimination of unappealing
cccdegree of distinctiveness:
products/services

1. Breakthrough Innovation
- may also include inventions, occur
infrequently as these establish the platform on 2. Concept stage – the developed ideal will
which future innovations in an area are cccccccccccccccc undergo a consumer
developed. cccccccccccccccc acceptance test. This test
- must be protected by patent, a trade secret, cccccccccccccccc includes getting the initial
or a copyright. cccccccccccccccc reactions of the primary target
- Examples: Internet, computer, or airplane cccccccccccccccc market and the distribution
cccccccccccccccc channel.

2. Technological Innovation  Conversational interviews

- occur more frequently than breakthrough
innovations.
- are technological advancements of an 3. Product development stage – in this stage, the
existing product or service. These innovations ccccccccccccccccccccccccentrepreneur leverages
need to be protected too. ccccccccccccccccccccccccon the information
- Examples: wireless fidelity or Wi-Fi, laptop, ccccccccccccccccccccccccgenerated from the
and jet airplane. ccccccccccccccccccccccccprospective customers
ccccccccccccccccccccccccvia the concept stage.
3. Ordinary Innovations
 Determine actual reactions from
- occur ordinarily as the name implies.
prospective customers
- are commonly originating from market
 Conduct consumer panel
analysis and technology pull instead of a
technology push.
- this means that the market has a strong
influence in the implementation of an 4. Test marketing stage – this stage validates the
innovation. cccccccccccccccccccccccwork done from the first
- Examples: unlimited Internet plans of cccccccccccccccccccccccthree stages to measure
telecommunications companies, a wireless cccccccccccccccccccccccsuccess in the
mouse, and airbus for economical travellers. ccccccccccccccccccccccccommercialization of the
cccccccccccccccccccccccproduct or service.

 Actual sales results

Once the 3S of opportunity spotting and

assessment have been diligently done, the
entrepreneur should now be ready to prepare a
comprehensive business plan that covers
marketing, operations, and financial plans.

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Lesson 3  1st Semester   Know Your Customers
“Fundamentals of Market” - Marketing Research is a comprehensive and the
industry they revolve in process of understanding
Unique Selling Proposition and Value Proposition
the customers’ intricacies and the industry they
VALUE PROPOSITION
revolve in.
- A value proposition is a promise of value to be
delivered, communicated, and acknowledged. A - Marketing research is one of the most critical
value proposition is a statement that answers tasks of an entrepreneur. Therefore, no budding
the “why” someone should do business with you. entrepreneur should establish a business without
It should convince a potential customer why your undergoing unique selling propositions should be
service or product will be of more value to them clearly communicated to the target customers in
than similar offerings from your competition. the catchiest way possible. Common
communication channels include signage, web
How to create an effective value proposition to sites, social media, print ads, television, radio
the target customers: commercials and mobile advertisements.
1. Prepare a situation analysis that details the
problem(s) of the customers.
2. Make a value proposition straight to the point, Size of the arena where the entrepreneur’s business
simple and specific, in short there should be no will play. It is the approximation of the number of
complications. buyers and sellers in a particular market.

3. Highlight the value of the product or service so STEPS TO ESTIMATE THE POTENTIAL
that customers will easily get what benefits you MARKET
can provide.
1. Estimate the potential market-approximate
4. Adapt to the language of your market. number of customers that will buy the product
or avail the service (market space/market
5. Add credibility enhancing elements such as actual
universe)
testimonies from customers, partners or
stakeholders. 2. Eliminate the customers who are probably
unlikely to buy the product or avail the
6. Differentiate your value proposition with your
service.
competitors.

UNIQUE SELLING PROPOSITION 3. Estimate the market share-plotting and

calculation of the competitor’s market share
- Unique Selling Proposition (USP) refers to how
to determine the remaining portion for your
you will sell the product or service to your
venture.
customers. A method to market your product or
service in a way that is different than other CUSTOMER REQUIREMENTS
competitor’s marketing strategies. You can do this - are specific features and characteristics that the
in the form of product/service characteristics, customer need from a product or a service.
promotion strategies and tactics, distribution
centers, supply chain. Market Intelligence
- includes customer profiling, drives the
Tips on how to create an effective unique entrepreneur on what correct strategies and
selling proposition to the target customers: tactics to employ.
1. Identify and rank the uniqueness of the product or
Market Segmentation
service attribute.
- is the process of grouping similar or
2. Be very specific.
homogeneous customers according to
3. KISS (Keep It Short and Simple)
demographic, psychographic, geographic and
 The value proposition and unique selling behaviour.
proposition will only work effectively when
customers feel the true benefits of the product or
service being offered. Definition:
Target market is a business term meaning the market
 Both the value proposition and unique selling segment to which a particular good or service is
should be clearly communicated to the target marketed. It is mainly defined by age, gender,
customers in the catchiest way possible. Common geography, socio-economic grouping, or any other
communication channels include signage, web combination of demographics.
sites, social media, print ads, television, and radio
commercial and mobile advertisements.

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1. Demographic segmentation: The psychological variable derive from two

- the demographic segmentation divides principal types of customer: personality profiles and
customers into segments based on demographic lifestyle profiles.
values such as age, gender, family size, family
life cycle, occupation, education, religion, Example: Baby Products:
generation, social class and nationality. Marketers selling baby products have to
segment their marker in terms of age group, but
a. Age and life-cycle segmentation: they also have to consider psychographic
 the consumer’s needs and wants segmentation, because sales will depend on the
ccccccchanges with age. Therefore some lifestyle of the parents. If the parents have a
cccccccompanies use age and life-cycle lavish lifestyle, they will agree to spend money
ccccccsegmentation, where age and life- on expensive baby products.
cccccccycle determine the marketing
ccccccapproach.
4. Behavioural segmentation
b. Gender segmentation: - behavioural segmentation is based on the
gender segmentation is used to c customer’s attitude toward use of, or response
ccdifferentiate the needs and wants to a product.
ccbetween men and women due to the - it is the process of grouping the customers
ccfact that men and women have according to their actions. These behaviors are
ccdifferent attitudes toward a product. instigated by occasions, desired benefits, loyalty
and usage of product or availment of services.
c. Income segmentation:
income segmentation divides the
ccmarket into different income groups. It MARKETING MIX 7PS
ccis used in automobiles, clothing, MARKETING MIX
cccosmetics, and travel. Marketing mix: The 7ps of Marketing

d. Generation segmentation: The Marketing Mix

 each generation is influenced by - is a widely accepted strategic marketing tool that
ccthe times in which they grow up for combines the original 4 Ps (product, place, price,
ccexample the music, the movies, promotion) with the additional 3 Ps (people packaging
ccpolitics and other significant events and process) – in formulating marketing tactics for a
cccharacteristic of that period. product or service.

2. Geographic segmentation Entrepreneurs must use the 7ps model to do the following:
- the geographic segmentation divides customers  Conduct a situation analysis
into segments based on geographical areas  Set objectives
such as nations, states, regions, and countries  Conduct SWOT (Strength, weakness, opportunity and
- Example: if your company is selling desert threat) come up with marketing strategies and tactics.
coolers, it is obvious that the target market will
be extremely in hot regions of the world and not
the cold ones. Marketing mix: Ask the following key questions on the
onset
3. Psychographic segmentation 1. Product – what product or service is the most
- the psychological variables derive from two ccccccccccappropriate for the opportunity, and why will
principal types of customer: personality profiles cccccccccccustomers buy or avail them
and lifestyle profiles.
2. Place – where will you sell and how you distribute your
PERCEPTION ccccccccproduct?
- is a process wherein an individual receives
external stimuli using the five senses. 3. Pricing – what is the appropriate price and what pricing
ccccccccc strategy will be used for the target customers.
MOTIVATIONS
- involves physiological motivation (need of the 4. Promotion – how will you effectively target your market
person) and psychological motivation (customer cccccccccccc to drive awareness and increase sales?
preferences)
5. People – what type of people need to be hired?
ASPIRATIONS
- customers wants to achieve

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6. Packaging – what is the best packaging for the

cccccccccccccproduct that is attractive enough to
ccccccccccccccustomer and cost efficient at the
cccccccccccccsame time? What physical evidence
cccccccccccccdoes entrepreneur need to set up so
cccccccccccccas to sell the service.

7. Processing – what is the most compelling feature

cccccccccccccof the product of the business that
cccccccccccccwill make difference in the lives of
cccccccccccccthe customers?

Marketing mix:
 Product – what type and range of products will
you sell?
 Pricing strategy – what price will you set for
your products?
 Place – where will you sell and how will you
distribute your product?
 Promotion – how will you effectively target your
market?

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