M3 - MARKETING ASPECTS OF NEW VENTURES

• Market research - is important to know your customer’s needs and wants: the preferences of your customers

  Helps entrepreneurs decide whether to launch a product/service and how to market it to potential customers in the best way.
• 2 types of Market Research :

  • Primary research
  • Secondary Research
• Primary research – direct interactions with customers to conduct studies and gather valuable data

  • Quali and quanti research
• Focus Group Discussion


  Gather data from groups of 6-10 individuals with similar backgrounds and preferences to know what affects people in their purchase
• Individual Interviews


  Asks series of questions to respondents
• Ethnographic research


  Thorough research in the respondents' environment/in their own homes to provide more comfortable and honest environment for researchers. Observe consumers' daily lives on how they use the product. Requires a lot of time. Observation & Interview.
• Case Study Research


  Explore a specific event/phenomena, evaluating a case.
• Open-ended Questionnaire


  Cannot be answered with yes/no. Need more extended responses.
• Secondary Research – uses data and insights from other sources rather than collected directly (not interacting with customers

  • Public Sources - DTI
  • Commercial Sources - television, news paper
  • Company Websites - make their data and info accessibl
  • Other Sources - – published market studies, analyst reports, customer emails, customer feedback
• Market Research Development Process

  • Define the Problem
  • Define Buyer Persona
  • Prepare Questions and Conduct Research
  • List Major Competitors
  • Analyze the Results
  • Develop a Research Report
  • Make Decisions
• Product & Service Development

  By conducting research, businesses can:

  • Better understand customer requirements
  • Increase their chances of success
  • Maximize their impact and reach
• Types of Customer Requirements

  1. Service Requirement
  2. Output requirement
• Service requirement – this type of requirement is an intangible thing but still provides a sense of fulfillment to the customer (Consultation service, school service)
• Output requirement – this type of requirement is when output/goods are physical objects that are visible. Customers expect specific characteristics.
• Product & Service Development Strategy/ Process (PSD)

  • Can understand the competition, customer demands, and market change

  
• Product & Service Development Strategy/ Process (TCACR)

  • Trend analysis – combine opportunity gaps with emerging trends (real-world observations)
  • Consumer & Market Research – to identify the needs and desires of the target market correctly
  • Actionable insights – create new idea, innovate products
  • Concept development and refinement – visualize the product Implementation and launch
  • Results assessment – identify the areas that can be improved for future research
• Product & Service Development Flowchart

  visual representation of process/system

  shows steps, decisions, flow of information

  help identify bottlenecks and areas for improvement
• What is this

  A) Flowchart

  
• Costing - process of allocating costs to various aspects of a business
• Cost – all the money spent to manufacture a product/provide a service
• Types of Costing

  1. Product Costing
  2. Service Costing
  3. Unit of measurement
• Product Costing – calculate costs associated with making a product to be sold (costs to make a product)

  • Direct Materials
  • Direct Labor
  • Overhead cost
• How to get the cost of the product:

  a.       Product Cost = Direct Materials + Direct Labor + Overhead Costs

  a.       Product Cost per Unit = Total product Cost/Number of Units Produced

  (Example: cost of pandesal per piece – these are the units)
• Terms in Product Costing

  • Direct Materials
  • Direct Labor
  • Overhead Costs
• Direct Materials


  Expenses related to raw materials or components used to manufacture goods
• Direct Materials


  • Ingredients of a pandesal, which is the product
• Direct Labor


  Wages, benefits, insurance paid to employees that are involved in manufacturing and producing goods
• Direct Labor


  • The benefits and wages of bakers who make the pandesal
• Overhead Costs


  Expenses that are not directly related to the production. These are indirect labor, indirect materials, and other overheads
• Overhead Costs

  • Cashiers of pandesal bakery are considered as indirect labor because they don't directly make the product
• Service costing – calculate all the expenses used to provide a service (Ex: health facilities, educational institutions, banking services)

  • Fixed costs
  • Semi-variable costs
  • Variable costs
• Fixed costs – expenses that do not change regardless of how much activity the business is doing

  • Rent, salaries, loan payment, insurances
  • Ex: you will pay 900 pesos monthly rent even if you produce many or few products
• Semi-variable costs – consist of both fixed costs and variable costs

  Ex: Monthly/Hourly salaries of employees

  Ex: Schools have full-time teachers (fixed monthly salary) and part-time teachers (variable hourly salary because they get paid depending on the number of hours/units they worked)
• Variable costs – expenses that change depending on the business activities, productivity, and number of units produced

  Ex: Supply – depends on the number you need to produce or demands.

  Ex: You can manufacture 1000 products, but it’s not guaranteed that you will produce or need that much
• How to get cost of the service:

  a.       Total Service Unit = (Variable 1) x (Variable 2) x (Variable 3)

  • Can be Total Service Unit = (Number of Days) x (Number of Hours) for example
  • Total Service Cost = Fixed Costs + Semi-Variable Costs + Variable Costs
  • Service Cost per Unit = Total Service Cost/Total Service Unit
• terms in service costing

  • Fixed costs
  • Semi-variable costs
  • variable costs
• Unit of measurement - can vary depending on the nature of the service offered.

  • ex. hotel - per guest day/room days , canteen - per person
• Price is a crucial factor in influencing consumer choice
• Objectives of Pricing

  • Competition-Based Objective
  • Cost-based Objective
  • Customer-Value Objective
  • Market Share Objective
  • Sales Orientation Objective
  • Customer-Diver Objective
• Competition-Based Objective

  Price depends on competitors