Entrep Quiz 2 Flashcards by Amora, Kenshin Joshua E.

are your
market’s stated or silent problems
which refer to existing
inefficiencies, awkward workflows
or non-optimal solutions.

Market Problems

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People who have already purchased your
product.

Existing customers

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People who have not yet purchased your product but are
considering it.

Prospects

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People in your target market who are not
currently looking for a solution.

Target market users:

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are explicit statements from your market
that declare, “I want a product to do X.” While stated
needs are important

Stated needs

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which are problems with yet undefined
solutions.

Silent needs

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Once you identify a problem that applies to the market,
ensure that potential and existing customers actually care
about the problem. Is the perceived problem actually
urgent? Will customers care if the problem is not solved?
Do they have another way to solve this problem?

Is the market problem urgent?

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Determine if the identified market problem applies to a significant
percentage of your target market. Use quantitative research to
collect the data

Is the market problem pervasive?

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If the problem is significantly urgent and pervasive, chances are
good that customers would agree to pay for a solution. The next
step would be to understand how much they would be willing to
pay for a solution to this problem.

Will your buyers pay to have this problem solved?

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ESSENTIALS IN ENTREPRENEUR’S
OPPORTUNITY SEEKING

Entrepreneurial mind frame
Entrepreneurial heart flame
Entrepreneurial gut game

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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 mind frame

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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 heart flame

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This refers to the ability of the entrepreneur of
being intuitive. This also known as intuition.

Entrepreneurial gut game

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SOURCES OF
OPPORTUNITY

CHANGES IN THE
ENVIRONMENT
TECHNOLOGICAL DISCOVERY AND ADVANCEMENT
GOVERMENT’S THRUST, PROGRAMS, AND POLICIES
PEOPLE’S INTEREST
PAST EXPERIENCE

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A person with
entrepreneurial interest sees
possibility of business
opportunities in any new
discovery or because of the use
of latest technology.

TECHNOLOGICAL
DISCOVERY AND
ADVANCEMENT

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Entrepreneurial ideas arise when
changes happen in the external
environment. A person with an
entrepreneurial drive views
these changes positively.

CHANGES IN
THE
ENVIRONMENT

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The priorities, projects, programs,
and policies of the government are
also good sources of ideas.

GOVERNMENT’S THRUST, PROGRAMS, AND
POLICIES

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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.

PEOPLE’S
INTEREST

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The expertise and skills
developed by a person who has
worked in a particularfield may
lead to the opening of a related
business enterprise.

PAST EXPERIENCE

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*Is the rivalry between
companies selling similar
products and services with the
goal of achieving revenue,
profit and market share growth

COMPETITION

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refers to the immediate
industry in which your
company is doing
business.

COMPETITIVE
ENVIRONMENT

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*Process of collecting
information about the external
marketing environment to
identify and interpret potential
trends

ENVIRONMENTAL SCANNING

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THREE TYPES OF COMPETITORS

DIRECT COMPETITORS
INDIRECT COMPETITORS
REPLACEMENT COMPETITORS

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is someone
that offers the same products.
Direct competitors create profit
all in the same way.

DIRECT COMPETITOR

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offer the same products but have different goals. They do get revenue the same way.

INDIRECT COMPETITORS

offer substitute products. Usually, the substitute products are of a different price or quality than the dominant product in the market.

REPLACEMENT COMPETITORS

PORTER’S MODEL OF FIVE STRATEGIC FORCES AFFECTING INDUSTRY COMPETITION

Industry Competitors New Entrants Buyers Suppliers Substitutes

intensity of rivalry among firms in the industry.

Industry competitors

threats of new competitors entering the market.

New entrants

*Something unique to offer, has tremendous strength

RIVALRY AMONG EXISTING COMPETITORS

The firm’s own suppliers can pose a threat as well if the firm is too dependent on these suppliers and the suppliers know it. The suppliers can decide to increase their prices or to even become potential entrants to the industry as well.

BARGAINING POWER OF SUPPLIERS

*If barriers are low, new competitors are bound to enter the market. New competitors weaken your market. In the case where there are very minimal requirements in opening a business, anyone who have what it takes can always join the competition.

THREAT OF NEW ENTRAN

Customers drive down prices, handful buyers dictate the prices. If the firm is too dependent on its buyers, the buyers may sense this. They might band together and threaten the firm through additional demands. Buyers may also become potential entrants into the industry if they feel that entering the industry is a simple matter after all.

BARGAINING POWER OF CUSTOMERS

In an industry where substitution easy and inexpensive competitive power is weak.

THREAT OF SUBSTITUTES

IDENTIFYING BUSINESS IDEAS

LOOK WITHIN YOU LOOK AT OTHER PEOPLE’S INNATE ABILITIES AND KNOWLEDGE LOOK AT THE MARKET LOOK FOR PROBLEMS LOOK FOR HELP LOOK FOR TRIED AND TESTED IDEAS

What are your hobbies, talents, skills, and interests?

LOOK WITHIN YOU

Observe your community. What skills are available in the locality? Can these be developed as business ideas?

LOOK AT OTHER PEOPLE’S INNATE ABILITIES AND KNOWLEDGE

There are various ways of looking at the market for business ideas

LOOK AT THE MARKET

Problem could be a blessing in disguise for entrepreneurs.

LOOK FOR PROBLEMS

Try visiting the nearest Negosyo Center in your area and look at available business assistance programs.

LOOK FOR HELP

Another option for entrepreneurship is franchising, meaning you buy an almost ready-made business. You need not start a new business from scratch. You can buy an existing business or secure a franchise of a tried and tested business.

LOOK FOR TRIED AND TESTED IDEAS

The second step after identifying business ideas is to shorten your list of choices through a

Screening business opportunities

It is of primary importance that you, as a future entrepreneur, to actually like the business you would want to enter into.

Your personal Preference

No matter how much you like your own business, if your customers do not agree with you, you will basically have no business with him/her. Thus, it is of equal importance to study and abide by the customer requirements

Customer requirements

In our pursuit of satisfaction, we should remember to keep ourselves grounded to the fact that our products or services should also be realistic. It is easy to get carried away by our own and our customers' ideals to the point of impossibility.

Viability

You should be able to answer these questions: Did I financially profit from the sale of the product or service?

Profitability

Will help you find out ways of distinguishing your product or service from those already in the market and give you the market position you aim for.

Innovation or differentiation

Two critical steps in the strategic process are analysis of the organization and analysis of the environment. These two steps may be approached with a technique known as

SWOT analysis

Something that a company is good at doing. It is a quality that produces a competitive advantage for the company

strengths

Something that a company lacks It is a quality that puts the company at a disadvantage.

weaknesses

A factor in the external environment that is expected to work favorably towards company operations.

Opportunity

A factor in the external environment that is expected to have a negative effect on company operations

threats

is a business or marketing statement that summarizes why a consumer should buy a company's product or use its service.

Value Proposition (VP)

. In creating Value Proposition, entrepreneurs will consider the basic elements:

* Target Customer * Needs/opportunity * Name of the product * Name of the enterprise/company

refers to how you sell your product or services to your customer. You will address the wants and desires of your customers

Unique Selling Proposition (USP)

Some tips for the entrepreneur on how to create an effective unique selling proposition to the target customers are:

* Identify and rank the uniqueness of the product or services character * Be very Specific * Keep it Short and Simple (KISS)

These are the things that are essential for us

NEEDS

These are desires, luxury, and extravagance that signify wealth and an expensive way of living.

WANTS

Refers to the group of customers or organizations that is interested in the product

Market

Is the market a company wants to sell its products and services to

Target Market

A marketing term that refer to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action

Market Segmentation

TYPES OF MARKETING STRATEGIES

Geographic Demographic Psychological Behavioral

Climate b. Dominant ethnic group c. Culture d. Density (either rural or urban

Geographic

a. Gender b. Age c. Income d. Occupation e. Education f. Religion g. Ethnic group h. Family size

Demographics

are important because they provide a broad understanding of the different characteristics of a population.

Demographics

Needs and wants b. Attitudes c. Social class d. Personality traits e. Knowledge and awareness f. Brand concept g. Lifestyle

Psychographics

These behaviors may relate to the customers Perceptions , Knowledge , Reaction , Benefits , Loyalty and Responses

Behavioral

It helps marketing and product teams learn how different types of prospects and customers are likely to use their product, how engaged they'll be, and how long they might remain customers.

Behavioral

are the specific characteristics that the customers need from a product or a service.

Customer Requirements

An intangible thing or product that cannot be touched but the customer can feel the fulfillment.

Service Requirement

Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the product. Costumers will avail services as aproduct, then various service requirements can take the form of output requirements. F

Output Requirement

is like a size of the arena where the entrepreneurs will play their business

Market size

First step in determining the Market Size

o estimate the potential market

Second step in determining the Market Size

estimate the customers who probably dislike to buy your product or avail the services.

Third step in determining the Market Size

estimate the market share

the most important factor if you ever need to raise funding for your business.

Market size

Strategies for reaching target market

Undifferentiated marketing/Mass Marketing Differentiated marketing/Segment Marketing Concentrated Marketing (niche marketing): Micromarketing

When a firm produces only one product or product line and promotes it to all customers with a single marketing mix

Undifferentiated marketing/Mass Marketing

*When a firm produces numerous products and promotes them with a different marketing mix designed to satisfy smaller segments

Differentiated marketing/Segment Marketing

When a firm commits all of its marketing resources to serve a single market segment.

Concentrated Marketing (niche marketing):

Involves targeting potential customers at a very basic level, such as by ZIP code, specific occupation, lifestyle, or individual household.

Micromarketing

includes observation networking, interviewing and experimentation. It means that the person who needs the data does the gathering himself or herself

PRIMARY SOURCES

means that somebody else has gathered the data and you are a secondary user of said data.

SECONDARY SOURCES

One of the many ways to assess or validate customer's satisfaction on the product or service being offered in the market is by means of

Interview

This is the process of gathering people with similar interest, background and experiences to discuss on special topic of interest in order to gather vital information

FOCUS GROUP DISCUSSION

to gather vital information that is crucial in doing market research. This important technique is made possible by devising a good set of questionnaires which orientation is driven by knowing what products or services will have a good potential once offered.

surveys

Two critical steps in the strategic process

analysis of the organization and analysis of the environment.

Entrep Quiz 2 Flashcards

(87 cards)