Lesson 2 - Environment And Market

• WHAT IS SWOT ANALYSIS?


  STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
• WHAT ARE THE STEPS OF MARKETING?

  1ST : OBSERVE PEOPLE , ACTIVITIES , AND SERVICES

  2ND : GATHER IMPORTANT DATA , INFORMATION NEEDED IN CONDUCTING SWOT

  3RD : evaluate prospective business as to its profitability and sustainability.
• Strength are internal current factors that have prompted outstanding indicators of product and service performance.
• Weaknesses include internal characteristics or services that are subject for improvement.
• Opportunities are factors that the shop can take advantage of.
• Threats are external obstacles that have to be overcome.
• Common steps in analyzing competitors

  1. Identify competitors in the business
  2. Determine competitor’s goals and objectives
  3. Identify competitors’ strategies and tactics
  4. Assess competitors’ strengths and weaknesses
  5. Estimate competitors’ reactivity
  6. Determine which competitors to attack and to avoid.
  7. Formulating a business idea
• American creativity researcher William Edward Herrmann (YEAR 1993 ) who hypothesized quadrant brain theory

• 
BRAINSTORMING - is an excellent source of business ideas or opportunities when used as a technique for creative problem-solving. The objective of this activity is to come up with as many ideas as possible
• COMPLAINTS AND FRUSTRATIONS OF CUSTOMERS - are good sources of information. Feedback can result in improved system, products, or services, thus they become potential sources of business ideas and opportunities.

• EXHIBITIONS - are good sources of business ideas, information, and opportunities. By attending them, one gets an opportunity to interact and, alter on, transact business with sales representatives, manufacturers, distributors, and service providers. One will also get to come up with ideas, trends, and initial steps to start a business.

• SURVEY - is an excellent source of business ideas. Customers are asked to answer a series of questions in order to gather information about certain products or services. Besides talking to people, one could also get information through observation.

• MASS MEDIA - is an arrangement whereby the franchiser or sole distributor of a trademark, product, or service gives exclusive rights for local distribution to franchisees or independent retailers in return for their payment of royalties and conformity to standardized operating procedures.

• PERSONAL SKILLS AND EXPERIENCE - are significant sources of business ideas. For example, a carpenter with experience in working at a construction firm may set up his/her own carpentry business.

• HOBBY - is a favorite activity or interest a person engages in for pleasure and relaxation. It can be developed into a business opportunity. Many people started their business from simple hobbies or interests. For example, if enjoys fixing furniture, drawing and interpreting graphics design or diagram, and using hand tools and equipment. he/she may consider carpentry as livelihood and develop it into a full-pledged business.

• Quadrant D - Personalities Look at the big picture. These consumers see beyond the face value of products. They see potentials or possibilities and try out new things in a random manner but they hate paperwork, long forms, and complicated processes.
• Quadrant C - Personalities enjoy dealing and interacting with other people. They look for interpersonal relationships. In short, they like warm friendly establishments that are convenient and will make them comfortable; moreover, they like to touch merchandise.

• Quadrant B - Personalities are highly organized and very structured. Consumers are systematic. They plan and program their purchases, want order of efficient approach, and dislike clutter and confusion.

• Pricing - Affordable without sacrificing product quality

• Strengths and limitations - Well-matched with customer’s needs and expectations

• 
CREATIVITY - is the ability of a carpenter or an entrepreneur to come up with creative solutions to address the needs or problems by identifying new or innovative products and services. To become creative, one needs to use all his/her senses in seeking and seizing business idea and opportunities.
• Quadrant A - Personalities like facts and figures. They love analyzing things. They subscribe to logical reasoning. They do very well in quantitative and technical problem-solving, making them critical thinkers. consumers always compare and contrast products. They are skeptical about fantastic claims; therefore, they are not easily swayed by emotional appeals.

• • left-cerebral quadrants as
Quadrant A
• right-cerebral quadrant as
Quadrant D
• right-limbic quadrant is
Quadrant C
• the left-limbic quadrant as
Quadrant B
• Product warranty - 
Maintenance and services
• Determine competitor’s goals and objectives - After determining your potential competitors, find out their primary goals and objectives through interview or observation.
• Identify competitors’ strategies and tactics - Become a first-hand customer to get to know how your competitors operate their stores, or talk to your competitors’ customers and find out from

  them their reasons for patronizing the product.
• Assess competitors’ strengths and weaknesses - Use different marketing tools, such as survey, market plan, SWOT analysis, or

  competitors’ profile, to evaluate competitors’ strength and weaknesses
• Estimate competitors’ reactivity - Assess your competitors’

  ability to respond to reactions and feedbacks.
• Determine which competitors to attack and to avoid - Decide what, when, or how to produce products and offer services. To

  compete with your competitors, you really have to strategize.
• Function of the product - User friendly with self-explanatory manual of instructions

• Product quality assurance and standards - Passed industry standards with certification from legitimate organization

• Product Characteristics/Features
 - Possible Benefits to Customers
• Purpose of the product - Meets the needs of customers and saves time and energy

• 
Maintenance and services - Product warranty