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Entrepreneur Quiz 1 reviewer Cheat Sheet by

Quarter 1 Quiz 1 Topics: Entrepreneurship Market potential Market research Recognize and understand the market 7 p's of marketing

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.
 

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.
 

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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