Module1 a.

Undifferentiated product

Entrepreneurship - is a form that exhibits b. Differentiated product

characteristics of non-profits, governments, and • According to Durability
businesses.
a. Consumables
Social Entrepreneurs - A person or small group of
individuals who founds and/or leads an b. Semi-durables
organization or initiative engaged in social c. Durables
entrepreneurship.
Sustainability - consists of fulfilling the needs of
current generations without compromising the Nature and characteristics of a service
needs of future generations.
• Service intangibility
Product - anything that can offered to market for
• Service inseparability
attention, acquisition, use or consumption that
might satisfy a want or need. • Service variability
Differentiation - process of setting apart the • Service perishability
market offering to create superior customer value
and competitive advantage.
Service - An activity, benefits, or satisfaction Characteristics of entrepreneur
offered for sale that is essentially intangible and • Determination and perseverance
does not result in the ownership of anything.
• Drive to achieve

Enumeration • Opportunity orientation

Product Levels • Initiative and responsibility

• Augmented Product • Seeking feedback

• Actual Product • Persistent problem solving

• Core Product • Internal locus of control

• Calculated risk taking

Product classification • High energy level

• According to Use • Vision

a. Consumer product • Passion

b. Industrial product • Creativity and innovativeness

• According to type
a. Convenience product Entrepreneur Risk

b. Specialty product • Financial Risk

c. Shopping product • Career Risk

d. Unsought product • Family and social Risk

• According to differentiation • Psychic Risk

Module 3 Module 4
Example of Failed product Market - Group of Consumer who share similar
needs and wants and are backed by buying
• Colgate Beef Lasagna powers.
• Crystal Pepsi STP Model - A three-step model that examines
• Samsung Galaxy Note 7 the products or services as well as the way the
business communicates.
• Windows Vista
Profiling - Describing the identified market
segments using relevant segmentation
Pitfalls in Selecting New Ventures categories

• Lack of objective evaluation Market Segmentation - The process of dividing a

large group of consumers into subgroups.
• No real insight into the market
Market Targeting - Evaluating each market
• Inadequate understanding of technical segment's attractiveness and selecting one or
requirements more segments to serve.
• Poor financial understanding Target market - The business's most probable
and most logical consumers.
• Lack of venture uniqueness
Niche market - is a subset of a larger market with
• Ignorance of legal issues
its own particular needs or preferences, which
may be different from the larger market.
Phase in New ventures start ups
- Prestart-up Phase - Begins with an idea Branding - process of giving a meaning to
for the venture and ends when the doors specific organization, company, products or
are opened for business. services by creating and shaping a brand in
- Start-up phase - Commences with the consumers mind.
initiation of sales activity and the delivery
Positioning - The process of communicating the
of products and services, and ends when
brand image in the mind of consumers.
the business is firmly established and
beyond short-term threats to survival. Product position - The place it occupies in
- Post start-up phase - Lasts until the consumers’ minds relative to competing products.
venture is terminated or the surviving
organizational entity is no longer Market positioning - strategic exercise we use to
controlled by an entrepreneur. establish the image of a brand or product in
consumers mind.

Critical Factors for

New-Venture Development Enumeration
- Uniqueness Market
- Investment
- Growth of sales • Untapped Market
- Product Availability • Captured Market
- Customer Availability
 Opportunity identification - is central to the
domain of entrepreneurship and revolves around
Three (3) Market Categories the answers to the following:
• Potential Market • Why?
• Available Market • When?
• Penetrated Market • How?
Entrepreneurs - must be able to learn from their
STP Model experiences as well.

• Segmentation - use their existing knowledge base

acquired through work, experience, and
• Targeting education, to hone ideas into actual
• Positioning opportunities.
Creative thinking - is blended with imagination in
a logical process.
Steps in Identifying Market Segments
Creativity - is a process that can be developed
• Selecting a market or product category and improved.
• Choosing a basis for segmenting the market
• Gathering information for analysis
• Identifying existing segments in the market Enumeration
• Choosing the market that presents the greatest Trends
• and least amount of potential • Societal Trends
• Technology Trends
Four (4) Market Segmentation Variables • Economic Trends
• Geographic • Government Trends
• Demographic
• Psychographic Distilling Ideas into Opportunities
• Behavioral • General industry knowledge
• Personal work experience, and education
Market Targeting • Specific interest knowledge
• Primary Target - The business primary focus • Prior customer understanding
• Secondary target - Not as large but has growth • Prior market knowledge
potential

Typical Creative Process

Innovation
• Phase 1: Background or knowledge
accumulation
• Phase 2: The incubation process
• Phase 3: The idea experience
• Phase 4: Evaluation and implementation

Developing Your Creativity

• Recognizing Relationships
• Developing a Functional Perspective
• Using Your Brains

Innovation in Action
• Invention - Totally new product, service, or
process
• Extension - New use or different application of
an already existing product, service, or process
• Duplication - Creative replication of an existing
concept
• Synthesis - Combination of existing concepts
and factors into a new formulation or use

Principles of Innovation
• Be action oriented
• Start small
• Aim high
• Try/test/revise
• Learn from failures