ENTREPRENEURSHIP

• The Marketing Mix consists of the 7P's of Marketing: product, place, price, promotion, people, packaging, and process
• Entrepreneurs use the 7P's model to conduct a situation analysis, set objectives, conduct SWOT or competitive analysis, and come up with marketing strategies and tactics
• Product is any physical good, service, or idea created by an entrepreneur to serve customer needs and address existing problems
• Three levels of products:

  • Core Benefits: major factors why a customer buys a product
  • Physical Characteristics: better packaging for products or better customer experience for services
  • Augmented Benefits: additional benefits beyond core benefits
• Place refers to the location or medium of transaction, where entrepreneurs must research the area's population to find the best-suited location for the business
• Price is the value assigned to a product or service considering costs, competition, objectives, positioning, and target market
• Common pricing strategies:

  • Bundling: offering two or more products/services at a reduced price
  • Penetration: setting low prices to increase market share
  • Skimming: initially high prices that are later lowered
• More common pricing strategies:

  • Competitive pricing: benchmarking prices with competitors
  • Product line pricing: pricing different products within a product array
  • Psychological pricing: considering psychology and market positioning
• Additional common pricing strategies:

  • Premium pricing: setting a high price for elitism
  • Optional pricing: adding extra products/services for more revenue
  • Cost-based pricing: markup based on cost of sales
  • Cost plus pricing: markup based on a percentage of cost
• Promotion involves presenting products/services to the public to address their needs and gain attention
• Promotional tools include advertising, public relations, selling, and sales promotions
• People play a vital role in servicing customers, determining the type of people to hire, their basic skills, and the leadership style to be applied
• Packaging is how the product/service is presented to customers, focusing on attractiveness and cost-efficiency
• Process is the step-by-step procedure or workflow followed by entrepreneurs or employees to effectively serve customers
• Brand refers to the identity of a company, product, service, or entrepreneur, helping make the product known to customers
• Brand management involves supervising tangible elements (product, packaging, price, location) and intangible elements (perception and customer relationship)
• The Marketing Mix consists of the 7P's of Marketing: product, place, price, promotion, people, packaging, and process
• Entrepreneurs use the 7P's model to conduct a situation analysis, set objectives, conduct SWOT or competitive analysis, and come up with marketing strategies and tactics
• Product is any physical good, service, or idea created by an entrepreneur to serve customer needs and address existing problems
• Three levels of products:

  • Core Benefits: major factors why a customer buys a product
  • Physical Characteristics: better packaging for products or better customer experience for services
  • Augmented Benefits: additional benefits beyond core benefits
• Place refers to the location or medium of transaction, where entrepreneurs must research the area's population to find the best location for the business
• Price is the value assigned to a product or service after considering costs, competition, objectives, positioning, and target market
• Common pricing strategies:

  • Bundling: offering two or more products/services at a reduced price
  • Penetration: setting low prices to increase market share
  • Skimming: initially setting high prices and then lowering them
• More common pricing strategies:

  • Competitive pricing: benchmarking prices with competitors
  • Product line pricing: pricing different products within a product array
  • Psychological pricing: considering psychology and positioning of price
• Additional common pricing strategies:

  • Premium pricing: setting a very high price for elitism
  • Optional pricing: adding extra products/services for more revenue
  • Cost-based pricing: markup based on cost of sales
  • Cost plus pricing: markup based on a certain percentage cost
• Promotion involves presenting products/services to the public to address their needs and gain attention
• Promotional tools include advertising, public relations, selling, and sales promotions
• People play a vital role in servicing customers, determining the type of people to hire, their basic skills, and the leadership style to be applied
• Packaging is how the product or service is presented to customers, focusing on attractiveness and cost-efficiency
• Process is the step-by-step procedure or workflow followed by entrepreneurs or employees to effectively serve customers
• Brand refers to the identity of a company, product, service, or entrepreneur, helping make the product known to customers
• Brand management involves supervising tangible elements (product, packaging, price, location) and intangible elements (perception and relationship with customers)
• The word "entrepreneur" has a French origin, coined from "entre" meaning "between" and "prendre" meaning "to take"
• An entrepreneur is a person who creates unique ideas for a starting business
• Entrepreneurship is the science of converting processed ideas into a remarkable business venture, considering financial risks for profit
• Reasons to study Entrepreneurship:

  • Increases entrepreneurial interest
  • Discovers innovators with the potential to become entrepreneurs
  • Analyzes creative and attainable ideas
  • Helps in writing a business plan
• Levels of entrepreneurial development according to Action Coach:

  • The self-employed
  • The manager
  • The leader
  • The investor
  • The true entrepreneur
• A successful entrepreneur creates value for customers by providing viable solutions to everyday problems
• New terms coined from the Entrepreneur's field:

  • Technopreneur
  • Social Entrepreneur
  • Intrapreneur
  • Extrapreneur
• Competencies in Entrepreneurship:

  • Capability, capacity, and ability to handle situations in marketing, management, production, and finance