Entrepreneurship
Personal Attributes: |
Meaning |
Determination |
to bounce back after hard times |
Flexibility |
to change or move quickly in a changing market |
Leadership |
create rules and set goals |
Passion |
what gets them started and keeps them there |
Self Confidence |
comes from thorough planning |
"Smarts" |
common sense with knowledge and experience |
Entrepreneurship- is the process of designing, launching and running a new business, which is often initially a small business. The people who create these businesses are called entrepreneurs.
From french word “ ENTERPRENDRE”, which means “TO UNDERTAKE”
Personality Factors
Initiative |
doing things even before being told. |
Proactive |
which means he can classify opportunities and seize it |
Problem Solver |
which means he can retain good relations with other people. |
Perseverance |
meaning he will pursue things to get done regardless of challenges. |
Persuasion |
means that he can entice people to buy even if they don’t want to. |
A planner |
he makes plans before doing things and does not fail to monitor it. |
Risk-taker |
meaning which means that he is willing to gamble but he will calculate it first. pursue things to get done regardless of challenges. |
Market Targeting
aims to determine the set of buyers with common needs and characteristics |
Marketing Strategies
Individual marketing |
tailored for the needs of individual customers |
Differentiated Marketing |
products are designed to suit the needs of a particular segment |
Concentrated Marketing |
products are designed to suit the needs of majority of consumers in the segment market |
Mass or undifferentiated marketing |
mass produced for the whole market |
Market Segmentation
Division of the market into segments to easily address the specific market needs, pricing patterns and decision criteria in each segments. |
Types of Marketing Segmentation
Demographic Segmentation |
based on age, gender, ethnicity, income, level of education etc |
Geographical Segmentation |
based by their physical location |
Psychological Segmentation |
based on what customers think and believed like personality traits, hobbies etc |
Behavioral Segmentation |
based on variables such as perceptions, knowledge, reactions etc. |
Market Identification
strategic marketing method that proposed to define the detailed customer of the product |
Unique Selling Proposition (USP)
refers to how you sell your products and services to your customer. |
Value Proposition(VP)
summarizes why a customer should buy a company products or use its service. Use to convince a customer to purchase a particular product or service to add a value in their lives. |
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Environmental Factors
include political, climate, legal system, economic and social conditions and market situations. |
COMMON COMPETENCIES IN ENTREPRENEURSHIP
Leader |
Innovative |
Decisive |
Communicator |
Proactive |
Opportunity Seeker |
Risk-taker |
Core Competencies in Entrepreneurship
Economic and Dynamic Activity |
creation and operation of enterprise that focuses in generating wealth and profit |
Innovative |
looks for new ideas, needs creativeness |
Profit Potential |
compensated by profit from the operation |
Risk Bearing |
gamble but wise enough to offset risk |
Market Research
Gathering, analyzing and interpreting information about the products or services to be offered for the potential customers. |
Importance of Potential Market
Identify new customers for your business |
Find ways to improve and change your business |
Show potential to business collaborators and investors |
Increase your profit |
Create a strategic plan for changes in economy and market |
Ways to gather data
Interview |
establish the relationship with potential participants and gather information |
Telephone Interview |
less expensive and less time consuming version of interview |
Focus Group Discussion |
discussion with customers to generate ideas from their opinions and brainstorming |
5 Basic Functions of Packaging
Protection |
a. natural detioriation b. physical protection c. safety d. waste reduction |
Containment |
merging unit loads for shipping |
Information |
provides info about the product |
Utility of Use |
for convenience |
Promotion |
for promoting |
Types of Positioning
Solid Positioning |
attract customers with different reasons on the same product |
Functional Positioning |
providing benefits and getting favorable perception |
Symbolic Positioning |
self image enhancement, ego identification |
Experiential Positioning |
providing with sensory or cognitive |
7P's of Marketing
Product |
the most important part of marketing mix. Can be categorized as business goods or consumer goods |
Place |
represents the location where the buyer and seller exchange goods or services. |
Price |
the value of money in exchange for a product or service |
Promotion |
create an awareness and attract customers |
People |
consist of each person that is involved in the product directly and indirectly |
Packaging |
the outside appearance of a product and how it is presented |
Positioning |
the process of making an image to the minds of target market. |
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Types of Entrepreneur
Innovative Entrepreneurs |
make new things by thinking of new ideas |
Imitating Entrepreneurs |
dont create things and follow the ideas of other entrepreneurs |
Fabian Entrepreneurs |
skeptical of changes, dont initiate but follows when satisfied with results |
Drone Entrepreneurs |
they are conservatives, ready to suffer loss from their business |
Social Entrepreneurs |
initiate changes in social innovation and transformation in various fields |
Potential Market
A part of the market you can capture in the future. A population that is interested and willing to buy a product or service you own/have. |
Market size(steps to determine the market size)
estimate the potential market |
estimate the customers who probably doesnt like your product or avail your service |
estimate the market share using the competitor's market share to determine the portion of your venture |
Kinds of Products
Consumer Goods |
Products bought for the average consumer |
Business Goods |
Goods bought for producing the final product |
Stages of Distribution Channel
Channel 1 |
producer - whole saler- retailer - consumer |
Channel 2 |
producer- retailer- consumer |
Channel 3 |
producer-consumer |
Producer- makes the product
Whole saler- buys and stores large quantities of goods
Retailers - stores good in smaller quantities
Consumer- buyer of the product
Promotion
Radio |
Television |
Print |
Electronic |
Word of Mouth |
Public Relations or PR |
Personal Selling |
Sales Promotion |
Pricing Strategies
Penetrating Pricing |
low pricing at first then pricing increased after getting a market share |
Skimming Pricing |
higher price then slowly lowers price to gain a wider market |
Competition Pricing |
same prices with other competition |
Product Line Pricing |
creating complementary pricing rather than competitive pricing on products |
Bundle Pricing |
selling products together in a lower price compared to buying it individually |
Premium Pricing |
price higher than similar products. Give perception that product has higher value |
Psychological Pricing |
slightly lower than rounder numbers to convince people to buy it |
Optional Pricing |
main product which doesnt have many features priced low and optional accessories that is premium pricing |
Cost Plus Pricing |
add together the direct material cost, direct labor cost and overhead cost to derive the price of product. |
Cost Based Pricing |
fixed sum or percentage of the total cost for the pricing |
Value Based Pricing |
prices based on perceived value of the product by customers |
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