Introduction to Entrepreneurship Economic activity created by entrepreneurs

Entrepreneurs have been around longer than free enterprise

What is entrepreneurship? or capitalism itself. They create economic activity.
• Originated from the French word, entreprende, which Throughout history, entrepreneurs have been most
means to undertake responsible for:
• Capacity to take risks 1. Creating new products or services,
• Ability to own and organize 2. Significantly changing existing products or services through
• Desire and capability to innovate and diversify (Stepanek, innovation
1962) 3. Creating new markets for existing products or services, or
expanding the existing markets, and
Entrepreneurship 4. Recombining or creating new uses for existing products or
• the process of creating something new with value by services
devoting the necessary time and effort, assuming the
accompanying financial, psychological, and social risks, and Role of Entrepreneurs in the Economy
receiving the resulting rewards of monetary and personal • Entrepreneurs are vital in the economic development of the
satisfaction and independence. country.
• They provide employment that moves the economy
Are you an entrepreneur? forward, as shown in the development cycle:
• Entrepreneurs are people who develop innovative ideas
and bring them to the marketplace, creating prosperity for ● Mobilizers of Capital
themselves, spinoff products and services for less innovative ○ Entrepreneurs sometimes use their own savings as capital
business people, and increased economic activity for for their business ventures. However, if they do not have the
everybody. capital, money can be borrowed from banks to finance their
intended business.
Who is an entrepreneur? ● Service Providers
• Person who sets up business deals/starts and or operates a ○ Business ventures of entrepreneurs could be along the line
business in order to make profits of service like salons, spas or coffee shops.
• Organizer of an economic venture, one who owns, ● Tax Payers
organizes, manages, and assumes the risks of the business ○ Business establishments pay taxes to the government.
Thus, more business would mean more taxes and better
Who is an entrepreneur? government services.
• a person who is creative and innovative. He is a person who ● Employers
starts something new. ○ Usually, entrepreneurs hire people to help them in their
• may be male or female, young or old, professional, college business. A restaurant owner, for example, will hire cooks
graduate or school dropout, comes from A, B, C, D, or E and kitchen helper while he, the owner, does the purchasing
economic group. and attending to the customers
• an owner-manager and willing to take risks. Usually he is ● Suppliers of Products
someone not willing to work for others. Instead, he wants ○ Products and services are available through the efforts of
others to work for him. Usually, also his kind of business is the entrepreneurs. Without them, a scarcity of certain
single proprietorship because he does everything from products and services will be felt.
production to selling.
REWARDS OF ENTREPRENEURSHIP
Who is an entrepreneur? Profit
Schumpeter’s View of Entrepreneurship • Profit generally comes in the form of money or cash. This is
• emphasis on innovation, such as: the material income or rewards from running a business.
– new products • Profit is what is left after deducting the cost and expenses
– new production methods from the selling price of products and services. Thus,
– new markets
– new forms of organization Selling Price – Cost and Expenses = PROFIT

• Entrepreneur Freedom
– a person who is willing and able to convert a new idea or • The entrepreneur has freedom to do what he feels is fit in
invention into a successful innovation his business. The products may be those he bought for sale,
those he bought and converted to other products or those
• Entrepreneurship services he renders to others.
– employs "the gale of creative destruction“ • Freedom includes what product to sell, there to sell and
• to replace in whole or in part inferior innovations, when to sell. This is what is referred to as being one’s own
simultaneously creating new products boss.
 You have to file many papers with the government and deal
Psychological Rewards: Service to Others with red tape.
• The third benefit of entrepreneurship is the good feeling of You become the government’s collector for income and
being of service to others. value-added taxes.
• The entrepreneur is able to satisfy customer’s needs, to You have to contend with your employees and customers.
give work or employment to others, to pay taxes to the You will do most of the work by yourself with minimal
government and to support the community. support from others.
• Generally, the entrepreneur enjoys what he is doing. To You risk losing all your money invested in your business.
most entrepreneurs, running their business is fun. They feel
like they are always socializing with their customers, their PROFIT MOTIVATOR
employees and their business associates. Income for Sustenance
Income Augmentation
Challenges of Entrepreneurship Capital Formation
> Entrepreneurship demands hard work Capital Preservation
> Entrepreneurship demands long working hours
> Entrepreneurship may cause emotional stress CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS
Passion for the business
The Motivating Factors for Asians Product and Customer focus
Profit motive Tenacity despite failure
Desire to use a skill or competence (either professional or Execution intelligence
technical)
Achievement motive Evaluation of being an Entrepreneur
Support or external variables such as availability or capital The following entrepreneurial characteristics
surplus and cheap labor, high demand for product and • Self-confidence
accessibility to market • Optimism
Tired of regular employment • Persistence, adaptability, and the ability to deflect failure
Having been forced by certain circumstances • Preparedness and thoroughness
Social awareness • Delayed gratification
• Opportunity recognition
Advantages • Need for achievement and the ability to work hard.
You are your own boss. • Willingness to take, and ability to calculate, risks.
Your time is yours alone. • Ability to handle ambiguity
Some of your current personal expenses can be tax- • Integrity
deductible.
You fulfil many of your dreams. Techno 101: An Introduction to Technopreneurship Part II
You can employ jobless friends, relatives, and other
dependents. STARTUPS vs. BUSINESSES
You do something that you really enjoy. > STARTUPS
You can meet more interesting people. • Technology Based (either hardware of software)
You can never be fired from you own business. • Lean manning
you can become wealthy through your own business. • In search of a repeatable and scalable business model
You develop a high reputation or status in the community. • Aims to disrupt the industry by using the right business
You can sleep late now and wake up late too. model to reach the largest target market
You do not have to wear a daily office uniform anymore. • Goes to venture capitalists for seed funding
You can plan you daily activities by yourself and chart your • Goals to be temporary (either IPO, buying out or closing)
future.
BUSINESSES
Disadvantages • Brick and Mortar
Now, you will have several bosses to contend with (your • Employs a reasonable amount of employees
customers). • Earns revenues in a proven setup or business model
You will spend more time in your business. • Aims to be profitable in the selected industry by reaching
You will incur more unexpected expenses. the right market
You will no longer receive regular paychecks. • Goes to debt financing
You will not get support from corporate resources of your • Goals to stay in the market
previous employer.
You will no longer enjoy sick leaves, paid vacations, and other UNICORN - A privately-owned start-up company with a $1
perks courtesy of the company. billion or higher valuation
You risk your health due to long hours of work and stress.
HORSES & ZEBRAS -companies that are inferior to unicorns Piggy Back. Build upon existing trends, technologies and even
because they are valued at substantially less than $1 billion companies!

GAZELLE - A company that has a growth rate of between 20 Leap Frog! Pushing the boundaries of what is known, possible
and 40 percent over four consecutive years and even allowed.

CHEETAH - A company with a fast pace of growth, similar to a Habits of Entrepreneurs

gazelle. Used by those who feel the gazelle doesn't > Pay it Forward
adequately capture that growth - "Agree that you will get help from others, and pay it
forward."
MOUSE OR ELEPHANT - A company that is growing far more > Storytelling
slowly than a gazelle or cheetah - "Realize something new by induction, and then learn
to communicate the story with a new language."
GORILLA - A market leader > Friend or Foe
- "If you can't tell: Learn to trust others without
CHIMP - Those who have a competing but different product expecting anything in return."
to a gorilla and are less successful > Seek Fairness
- "Make deals that seek fairness (in positive sum
MONKEY - A company that is an inferior copycat of a gorilla transactions), not advantage (in zero sum
and undercuts price and exaggerate claims transactions).”
> Plan to Fail
- If you ask generic questions, you get generic solutions. - "It is necessary to be wrong sometimes. Plan to
- If you reframe the question, it will lead to a broader experiment. Plan to Fail. (Fail Fast) Analyze, adapt
spectrum of possibility. - and repeat. The smarter you think you are, the
- In order to reframe questions, you need insights. harder this is going to be."
- To get insights, you need to be able to deeply connect with > Diversify
peopl - Diversify your networks. Connect to people you
would not normally, then go and listen. Open up.
Innovation And connect them to others."
• Innovation is all about solving the day-to-day problems of > Role Model
the world. - "Be a role model for other entrepreneurs and
• It is all about making the life of people easier. innovators."
• Innovation is about asking questions and understanding > Believe
people. - "Believe that you can change the world."
• Invention is not Innovation if it does not solve a problem.
> Good Enough
Invention is not Innovation if it does not solve a problem. - "Perfection is no good but good enough is perfect."
> Collaboration
“There is no value until customer needs and technical - "Individual vs team and competitors vs partners."
capabilities intersect”
Why some Startups Fail?
Human-Centered Design Thinking “Failing to involve customers and their feedback from literally
- Is enlightened Trial and Error. the first day of a startup’s life.”
-You know your clients very well. “Get out of the building and talk to the only folks who
-Intimately. Deeply. matter– your customers.”
- Sometimes, we provide solutions not understanding the - Steve Blank
problem.
Recognizing Opportunities and Generating Ideas
- Questions, not ideas, are the most fundamental unit of What is An Opportunity?
innovation. An opportunity is a favorable set of circumstances that
- Great innovations are rooted creates a need for a new product, service or business.
on great questions.
Difference between and Idea and an Opportunity
Cat, Pig and Frog by Matthew Cua Idea - A thought, impression or notion.
To start. Be a copycat. Nothing is purely original. Everything is - May or may not
based on something existing. - Meet the criteria of an opportunity.
Opportunity - set of circumstances that makes it possible to These problems can be pinpointed through observing trends
do something. and through more simple means, such as intuition,
serendipity, or change.
Qualities of Opportunity
Opportunity Recognition is the process of “perceiving the Second Approach: Solving a Problem
possibility” of potential and profitable product or service. - Oil won’t last forever so Dubai bets on Technology
and Tourism
POTENTIAL OPPORTUNITY THAT IS…
Finding Gaps in the Marketplace
Three Ways to Identify an Opportunity Third Approach: Finding Gaps in the Marketplace
- Observing Trends - Often created when a product or service is needed
- Solving a Problem by a specific group of people but doesn’t represent a
- Finding Gaps in the Marketplace large enough market to be of interest to mainstream
retailers or manufacturers.
First Approach:
Observing Trends “Product gaps in the marketplace represent potentially viable
- Trends create opportunities for entrepreneurs to business opportunities”
pursue.
- The most important trends are: Personal Characteristics of the Entrepreneur Prior Experience
Economic forces
Social forces > Prior Experience: Several studies have shown that prior
Technological advances experience in an industry helps an entrepreneur recognize
Political action and regulatory change business opportunities.
- It’s important to be aware of changes in these areas. > Cognitive Factors: Studies have shown that opportunity
recognition may be an innate skill or cognitive process.
Trend 1: Economic Forces > Social Network: Strong Tie vs. Weak Tie Relationship
Economic trends - help determine areas that are ripe for new > Creativity: Creativity is the process of generating a novel or
startups and area that startups should avoid. useful idea.
- affect consumers’ level of disposable income.
Characteristics that tend to make some people better at
Trend 2: Social Forces recognizing opportunities than others.
Social trends alter how people and businesses behave and set
their priorities. These trends provide opportunities for new Social Networks
businesses to accommodate the changes. Nature of Strong-Tie Vs. Weak Tie Relationships
-Strong-tie relationships are characterized by frequent
Trend 3: Technological Advances interaction and form between coworkers, friends, and
Advances in technology frequently create business spouses. Weak-tie relationships are characterized by
opportunities. infrequent interaction and form between casual
Computer industry acquaintances.
Internet
Biotechnology Result: It is more likely that an entrepreneur will get new
Digital photography business ideas through weak-tie rather than strong-tie
relationships.
Once a technology is created, products often emerge to
advance it. Social Networks
Why weak-tie relationships lead to more new business ideas
Trend 4: Political Action and Regulatory Changes than strong-tie relationships
- Political action and regulatory changes also provide
the basis for opportunities. Strong-Tie Relationships: These relationships, which typically
- Company created to help other companies comply form between like minded individuals, tend to reinforce
with a specific law. insights and ideas that people already have.

Solving a Problem Weak-Tie Relationships: These relationships, which form

Second Approach: Solving a Problem between casual acquaintances, are not as apt to be between
Solving a Problem: Sometimes identifying opportunities like minded individuals, so one person may say something to
simply involves noticing a problem and finding a way to solve another that sparks a completely new idea.
it.
Full View of the Opportunity Recognition Process Venn diagrams help to visually represent the similarities and
-Depicts the connection between an awareness of emerging differences between two or more concepts.
trends and the personal characteristics of the entrepreneur
Design Thinking: How Might We…
Techniques For Generating Ideas • HMW is a simple design thinking tool to spur ideation and
Brainstorming & Brainwriting: a technique used to generate a solution proposals.
large number of ideas and solutions to problems quickly. • HMW + Problem Statement
• How Might We Provide Better Training To Teachers?
Focus Groups: A focus group is a gathering of five to ten
people, who have been selected based on their common Technology Know How & Customer Know Who
characteristics relative to the issues being discussed.
Technology Push (Know How)
Library and Internet Research: Assistance from reference
Librarians that can point out useful references, Search Market Pull (Know Who)
Engines for Internet Use.
Technology Push
Other Techniques • When R&D in new technology, drives the development of
> Customer Advisory Boards: Some companies set up new products.
customer advisory boards that meet regularly to discuss • Usually does not involve market research.
needs, wants, and problems that may lead to new ideas. • Tends to start with a company developing an innovative
technology and applying it to a product.
> Day-In-The-Life Research: A type of anthropological • Marketing of the product follows.
research, where the employees of a company spend a day
with a customer. Technology Push
• Published Research During 1960s
Encouraging New Ideas • Beginning to secure funding in the 1980s.
> Establishing a Focal Point for Ideas: Some firms meet the
challenge of encouraging, collecting, and evaluating ideas by Market Pull
designating a specific person to screen and track them—for if • Refers to the need/requirement for a new product or a
its everybody’s job, it may be no one’s responsibility. Another solution to a problem, which comes from the market.
approach is to establish an idea bank (or vault), which is a • Need is identified by potential customers or market
physical or digital repository for storing ideas. research– then product/s are developed, to solve the original
> Encouraging Creativity at the Firm Level: Creativity is the need.
raw material that goes into innovation and should be • It starts with potential customers asking for improvements
encouraged at the organizational and individual supervisory to existing products.
level. • Focus groups are often central to this, when testing a
concept design or an existing product.
Protecting Ideas From Being Lost or Stolen
Step 1: The idea should be put in a tangible form such as In assessing the technology…
entered into a physical idea logbook or saved on a computer
disk, and the date the idea was first thought of should be One should Know How Technology Works.
entered. - Who is the end user for the technology / product?
- Who is the customer for the technology / product?
Step 2: The idea should be secured. This may seem like an - Why would the customer be willing to pay for the
obvious step, but is often overlooked. technology / product?
- What is the Technology Readiness Level?
Step 3: Avoid making an inadvertent or voluntary disclosure
of an idea, in a manner that forfeits the right to claim One should Know Who the Customer is.
exclusive rights to it. - What is the problem? What is the hardest part?
- Tell us the last time it happened? How frequent does
Ideation Stage it happen?
- Why was that hard?
Venn diagram is an illustration that uses circles to show the - What have you done to solve the problem?
relationships among things or finite groups of things. Circles - What don’t you love about the solutions you’ve
that overlap have a commonality while circles that do not tried?
overlap do not share those traits.
Assessing Technology Readiness Level: Technology Know How The Concept of Six Degrees of Separation
“Six Degrees of Separation doesn’t mean that everyone is
Assessing Technology Readiness Level linked to everyone else in just six steps. It means that a very
Has a design or design recommendation been presented? small number of people are linked to everyone else in a few
• What are the core features of the design? steps, and the rest of us are linked to the world through those
Has a proof-of-concept been demonstrated? special few.” – Malcolm Gladwell
• What was the core feature (s) demonstrated?
Has a lab prototype been demonstrated? DOs
• What were the key performance Get out of the building and campus and try to mee working
characteristics/results/specifications? and industry professionals. We are looking for people who
Have field tests been done? will buy/use/distribute technology
• Specify the industry or pilot test partner. Ask professors /researchers, orgmates, or older students to
• What were the preliminary field performance results? refer you to alumni.
Were the customers satisfied with the field test results? If your contact happens to be a family member or relative, list
• Specify the industry or pilot test partner. their industry affiliation.
• What were the key satisfactory field performance results?
Have scale-up pilot tests been done? DON’Ts
• Specify the industry or pilot test partner. List of professors / researchers who are just developing
• Specify the manufacturing partner. technology.
• What was the volume / size of the scale-up
production/testing Know-Who Funnel
Qualifying Know-Who Funnel
The X-Factor: Why would these customers prefer your • Individual Ranking
solution over the current solution? • Add 1 point for the entry if you are confident in getting an
Common mistakes: interview.
• Not available in RP but available abroad • Add 1 point for the entry if the contact is in your industry.
• Often very easy to import.
• Is there an advantage in manufacturing locally? • Peer Ranking
• Only X-Factor is low cost • Add 1 point for the entry if the contact is likely to have the
• Is it produced with different materials or different process? knowledge of the core problems in the company
• If No, you probably cannot compete with large scale foreign • Subtract 2 points in the entry if the contract falls in the
competition. Don’ts Category.
• If Yes, can the source material be produced at a large scale? • Total all points and rank the list of contacts from highest to
• If no, your product will not have enough sales volume. lowest.
*unless solved
• If yes, looks like you are a candidate for innovation. DOs
Find a warm lead– commonality, mention the
Bio-N: Microbial Fertilizer from UPLB Biotech person referred.
• Organic / Microbial Inoculant Fertilizer for rice and corn Work your way up.
• Invented in the ealy 1980’s by Dr. Mercedes UmaliGarcia, Make a good impression with the available contact and make
from UP Los Banos. them refer you to others.
• Dr. Garcia isolated two strains of bacteria from talahib grass Offer some benefit to the other person.
and was able to transfer the resiliency trait of the grass to rice Do a background review of the contact and their company.
and corn.
• For more info: DON’Ts
https://www.philstar.com/business/agriculture/2001/05 Ask for a lot of time— aim for smaller chunks of time.
/19/83345/effective-microbial-fertilize Make them adjust to your schedule.

Prioritizing the Technology Customer Interview Guide

Customer: Which entry addresses the largest local industry? The wrong way.
X-Factor: Which entry prioritizes competitive technologies? • Would you use a product that does…?”
TRL: Which entry highlights higher technology? • How much would you pay for it?
Current R&D Activity: Which entry prioritizes ongoing
projects of discontinued ones? Why doesn't it work?
• Question is leading. Talking about the product right away.
Finding & Understanding customer problems: Customer • Shifts the focus away from the customer
Know Who • Reduces the likelihood of collaboratively finding the most
pressing problem and a better solution.
 • It is more effective in the discovery phase and not after the
Customer Interview Guide product development phase.
The right way.
What’s the hardest part about [the problem? Customer Insights help personalize your marketing.
Can you tell me about the last time that happened? Consumer Insighting helps refine the way you communicate
Why was that hard? to your customers.
What, if anything, have you done to solve that problem? Customer Insighting is essential to learn about and
What don’t you love about the solutions you’ve tried? understand your audience better and deeper.
Consumer Insighting provides action items to improve the
Core Problem and the 5 Whys way you market your business.
Focus on core problem
• Ask about the core products / service. The Environment affects Customer Insights.
• Understand the key processes in the production and • Digital Age
distribution. • The Power of Internet
• Focus on its critical & technology related issues. • Pandemic Situation

Understanding Know Who Types Facts vs. Insights

> Users • Market Research differs from Customer Insighting.
• Uses and interacts with the product day-to-day. • Market Research gathers information about customers:
>Influencers Market needs
• People who think they have a stake in product adoption. Market size
> Recommenders Competitors
• Influence product purchase decisions. Can make or break a Customers
sale
> Economic buyer • It tells us what is happening.
• Has the budget and must approve the expense • Customer Insights does the same but includes
> Decision Maker recommendations, data interpretation and analysis.
• If different from the economic buyer, someone who has the • It tells us why it is happening.
ultimate say in the purchase.
> Saboteurs Call Center Agents
• Supports the status quo. Opposes change. Hypotheses (Educated Hunches)
• They used to be like that in the production area.
Understanding the customers deeply: • They’re passionate and expressive.
Customer Insighting for Innovation • They want to showcase their accent.
• It’s their release of tension from work.
- 80% of products fail • They are capampangans.
- 90% of startups fail However; insights showed…
- Germaine A. Reyes They are graveyard shifts.
CEO, Synergy They longed for family conversations.
Their workmates are their circle of friends.
Key to startup success: Product Alignment with customer
needs Consumer Insighting for Successful Innovation
• Solve Customer Problems by doing your research.
Great innovations are rooted on great questions. • Understanding their problems.
Great questions are rooted on great insights, Inspired by • Observing and focusing on their pain points.
deep conversations with people. • Money, Relationship, Travel, Time, Quality of Life, Physical
- Miguel Aranaz etc. (B2C)
Design Thinking Expert • Operating costs, Productivity, Capital & Investments,
Reputation. (B2B)
Always do CUSTOMER INSIGHTING • Checking their persona.
• social media, behavior
Customer Insighting • What solutions have they done?
• is an interpretation used by businesses to gain a deeper • What do they want?
understanding of how their audience thinks and feels. • We have to be meaningful as a brand.
• Analysing human behaviors allows companies to really
understand what their consumers want and need, and most
importantly, why they feel this way.
To Solve Customer Problems ▪ Supply chain
Observe ▪ Competition
Listen to conversations around your family and colleagues ▪ Marketing environment
Listen to Social Media Chatter
Check Online Sources Five Types of Needs
Talk to People > Stated needs
- What the customer asks for
There is no specific checklist for Customer Insighting. - wanting an inexpensive car
Everyone just needs to be fascinated with asking questions. > Real needs
-What the stated needs actually mean
Customer Persona - …with low operating costs
• is a fictitious model of an ideal customer. > Unstated needs
• It generally includes demographics (age, gender, location, -What the customer also expects but does not ask for
and occupation) as well as psychographics (motivations, likes, - expects good after-sales service
dislikes, and pain points). > Delight needs
-Needs that are not essential but would delight if met
MARKETING 101 - would like a gift with the car
Defining Marketing for the 21st Century > Secret needs
-Needs that the customer does not express, often intangible
Good Marketing is No Accident in nature
- wants to be seen by friends as Toyota publica or EE 90
Starbucks plans to ensure its marketing successes in countries
around the world. THE MARKETING MIX – “FOUR P’s”
> Product: Who or What?
What is Marketing? > Place: Where and When?
Marketing is an organizational function and a set of processes > Price: How much?
for creating, communicating, and delivering value to > Promotion: Why or Why not?
customers and for managing customer relationships in ways
that benefit the organization and its stakeholders. Products that are Tangible

What is Marketing Management? PRODUCT

Marketing management is the art and science of choosing “ Great companies are built on great PRODUCTS
target markets and getting, keeping, and growing customers - Elon Musk
through creating, delivering, and communicating superior
customer value. UNIQUE SELLING PROPOSITION (USP)
- What sets your product apart from the rest of the
Selling is only the tip of the iceberg competition?
“There will always be a need for some selling. But the aim of - Prestige or Emotion
marketing is to make selling superfluous. The aim of - Technology
marketing is to know and understand the customer so well
that the product or service fits him and sells itself. Ideally, VALUE PROPOSITION
marketing should result in a customer who is ready to buy. All An innovation, service, or feature intended to make a
that should be needed is to make the product or service company or product attractive to customers.
available.” - Peter Drucker What value do you intend to deliver to your customers?
Turning problems into opportunities can lead to compelling
Marketing’s first task: discovering consumer needs value propositions.
Marketing’s second task: Satisfying consumer needs
CHARACTERISTICS OF A GOOD BUSINESS ENVIRONMENT
What is Marketed? Good population sample size, close to your target market
Goods, Services, Events & Experiences, Persons, Places & Robust economy and presence of livelihood opportunities
Properties, Organizations, Information, Ideas Level of security that spurs shopper confidence
Convenience and ease of access to your customers.
Core Marketing Concepts
▪ Needs, wants, an demands DISTRIBUTION CHANNELS
▪ Target markets, positioning, segmentation How can your customers access or purchase your product?
▪ Offerings and brands Brick and Mortar Stores
▪ Value and satisfaction Online Stores
▪ Marketing channels
PRICING STRATEGIES
1. Cost-plus pricing – Calculating costs and adding a Choose the target market by means of…
mark-up Needs.
2. Competitive pricing – Setting a price based on what - It is usually something the customer does not have
the competition charges or a need that is not currently being met.
3. Value-based pricing – Setting a price based on how - What unmet needs do prospective customers have?
much the customer believes what you’re selling is
worth How does the business meet does needs?
4. Price skimming – Setting a high price and lowering it Wants
as the market evolves - It is a customers’ desire or wish. It can also be a
5. Penetration pricing – Setting a low price to enter a deficiency.
competitive market and raising it later What is more important?
WANTS OR NEEDS
PROMOTION Would you rather be wanted or needed?
CHARACTERISTICS OF A GOOD PROMOTIONAL STRATEGY
Attention grabbing Choose the target market by means of… Problems. People
Memorable buy things to solve a specific problem.
Clear and Concise What problems does the product or service solve?
Delivered at the right place and at the right time
Targeted Perceptions. The negative and positive outlook or idea that
Emotional the customers have about the company and its products or
services. Information gathered about these concerns will be
SOCIAL MEDIA MARKETING used at the start of marketing and promoting the business.
A hybrid of Above and Below the line marketing
Business to Business Market
THE MARKETING MIX – “The Additional 3P’s” •It is meeting the needs of other businesses.
> Process: How to avail?
> People: Who will deliver or execute? B2B Market Segmentation
> Place of Evidence: If service; quality. If app; UX / UI 1. Geographic Target Market Segmentation
PROCESS 2. Firmographic Target Market Segmentation
3. Psychographic Target Market Segmentation
COMMON IDEAS ABOUT MARKETING: MYTHS OR FACTS? 4. Need-Driven Target Market Segmentation
“Marketing is the same as Advertising. It’s all about billboards a. A price-focused segment
and commercials!” b. A quality and brand-focused segment
“We shouldn’t aim to sell to all people because not everyone c. A service-focused segment
is our customer.” d. A partnership-focused segment
”Lowering prices leads to increased sales!”

”In marketing, being the first or the market leader matters Business to Consumer Market
the most.” The segmentation of consumer markets needs the creation of
“Marketing is an art, not a science” sub-groups from a larger population to more specifically
“Marketing is only practical for business majors or target.
management professionals” Segmentation in B2C is about identifying precise groups of
people based on general characteristics
Target Market
B2C Market Segmentation
What is the target market? 1. Demographic Factors
It is a group of customers towards which a business has 2. Psychographic Factors
decided to aim its marketing efforts and ultimately its 3. Behavioral Factors
merchandise. 4. Consumer Lifestyles (Consumer Trends)

A well-defined target market is the first element to a Demand Analysis

marketing strategy. It is making a numerical evaluation of the market and the
segments of the market defined.
Targeting a Definite Market
Target Marketing allows the company to focus on marketing Potential Demand. It is the maximum the consumers
peso and brand message on a specific market that is more could buy in a determined period of time.
likely to buy from his company than other markets.
Actual Demand. Demand for the product or service Supply Side Gaps
this year or the previous year if the data is not available. Supply side gaps come about when a business finds that the
services that it has traditionally offered to customers in the
Demand Analysis past are now too expensive to justify the value they provide.
Future Demand (Forecast). To establish future
demand, estimate the increase in demand for the next After understanding the existing supply in the market, the
year as a percentage of actual demand. relevant data will be analyzed as to the market shares of each
supplier in the service area. Market Share is the percentage
Evolution of Demand. To see the potential evolution of a market accounted for by a specific entity.
of demand, make a graph of historical sales in your
sector. Using this, you can see the market trends and The Supply Analysis shows the existing supply condition prior
define the phases of the product life cycle. to the implementation of the new business venture.
• The start up business must have detailed data as to the
Demand Side Gaps market shares in a given geographical location, demographic
Customer satisfaction abounds, and many consumers data, stakeholders and clients, and other related supply
would like to change their current suppliers. factors. Based on supply analysis, one can show the past,
present and projected supply.
Demand Side Gaps
Although a gap may exist in the sense that existing firms are • After identifying the existing supply, the relevant data will
not offering what consumers may ideally desire, there is a be analyzed as to the market shares of each supplier in the
limit to what buyers would be willing to pay for. service area followed by the marketing plan. Same statistical
analysis will be used to analyze the growth for 3 to 5 years
This is the most important part of the feasibility study as it
requires to know the demand or the need of the Demand and Supply Gap Analysis
product/service offering. The Demand Analysis presents the • Gap Analysis involves analyzing the current market offering
potential market demand on the basis of the service area, to assess the extent to which they meet customer demands.
demographic profile, stakeholders and clients and other • Demand Side Gaps involve a market situation where
identifying demands of the product or service. consumers are not satisfied buying what is available— either
poor service or expensive.
Demand Side Gaps • Supply Side Gaps involve firms that provide service that are
Geographical Locations. It provides the scope of the service needed, but ones that can be met at lower price.
area (numbers of cities, towns or territorial area) of the
feasibility study. • The most difficult part in the marketing analysis is
combining the relevant data as identified in the past, present
Socio-Demographic Profile. It entails the survey of relevant and projected demand and supply analysis.
data as to the income, profession, gender distribution, age
range, and other quantifiable demographic profile that may • Demand - Supply = Gap.
affect the implementation of the project • If the gap is positive, the project is viable.
• If the gap is negative, do not continue the market.
Stakeholders and Clients Profile. The project must clearly
identify the clients that need the products or services. The Projected Sales
potential buyers and clients are the relevant data needed to ● Projected Sales is the amount of revenue a company
present in this project. expects to earn at some point in the future.

Other Identifying Demand Analysis. Identifying demand ● Small business owners or sales managers usually
determinants are conducted through research study through make the sales projections. They may obtain input
assessment, primary documents as to socio-demographic from sales reps, top management and the marketing
profile, stakeholders and clients’ market shares and other department. Most small companies first calculate
relevant data that may have bearing to the project. the costs of producing or purchasing their products
or services. They then determine how many sales it
After identifying demand as to the relevant data available in will take to break even. Economic conditions,
the feasibility study, look into the data along with the seasonal sales spikes, the intensity of competition
past, present and future demand. and population shifts also are factored in to
determine sales projections.
Past Demand is the historical sales data which reflects the
past performance in the market. Present Demand shows the
sustainability of the demand which will then be the basis of
the Future Demand Forecast.
TAM SAM SOM Market Evaluations - Even in bright sunlight, Paperwhite delivers clear,
•TAM = Total Addressable/Available Market is the total crisp text and images with no glare
market for your product. This is everyone in the world who When writing a PProduct Description…
could buy your product, regardless of the competition in the - Make certain that there will be a connection of the
market. product features to the way that they can do well to
customers.
•SAM = Serviceable Available Market is the portion of the - Have a broad understanding of what the product is,
market that you can acquire. For example, your product may to advertise the potential advantage of the product.
only be available in one language, so your SAM would be the - Comprehensive definition of the product can help
subset of the TAM that speaks the language that your customers decide if they want or need to buy the
product product.
is developed for.
Uniqueness
•SOM = Service Obtainable Market is the subset of your SAM It is the process making the product different from others, to
that you will realistically get to use your product. This is make it more attractive to the intended target market.
effectively your target market that you will initially try to sell
to. Types of Product Uniqueness
- mSimple: Based on a variety of characteristics
PRODUCT AND SERVICE DESCRIPTION - Horizontal: Based on a single characteristic but
consumers are not clear on quality
How do you choose your product? - Vertical: Based on a single characteristic and
consumers are clear on its quality.
Samsung Note 9 or iPhone XS
“Do what can’t be done” Galaxy Note has always put Major Sources of Product uniqueness
powerful technology in the hands of those who demand Uniqueness in Quality
more. Now, the all new Galaxy Note9 surpasses even these Uniqueness in Functionality or Design Features
high expectations, focusing on what matters most in today’s Ignorance of buyers
always-on, mobile world. Sales Promotion
Uniqueness in Availability
“Welcome to the Big Screens” Super Retina in two sizes—
including the largest display ever on an iPhone. Even faster Uniqueness in Quality
Face ID. The smartest, most powerful chip in a smartphone. This is usually accompanied by a difference in price.
And a breakthrough dual-camera system with Depth Control.
iPhone XS is everything you love about iPhone. Taken to the Ignorance of buyers
extreme. Perceived Quality - customers’ perception on the overall
quality of a product or service with respect to its intended
A product description is the marketing copy that explains purpose.
what a product is and why it’s worth purchasing. The purpose
of a product description is to supply customers with details The N-S-P-P–USP Model
around the features and benefits of the product so they’re Stands for Need, Situation, Person, Product Description and
compelled to buy. Unique Selling Proposition.

How to write a product description statement? It explains the need for the product, the situation why the
product has to be made, the person/s who will be requiring
Entice with benefits and using it, the description of the product and the unique
Avoid yeah, yeah phrase selling proposition to make a good sale of the product.
Justify using superlatives
The BAFF Matrix
World’s most advanced e–reader - higher resolution, higher -Stands for Benefit, Advantages, Features and Functions.
contrast touchscreen with built-in and 8-week battery life -An additional manner of product description aside from the
N-S-P-P-USP Model.
- Patented built-in light evenly illuminates the screen -It provides the benefits customers will gain using the
to provide the perfect reading experience in all product, the advantages when this product is used, important
lighting conditions features of the products and the significant functions.
- Paperwhite has 62% more pixels for brilliant
resolution Connecting Solutions to the Problem
- 25% better contrast for sharp, dark text
Technology Matching
It is a person-centered resource used to foster user • What’s the hardest part about the problem?
engagement and guide a person-provider team in the • Can you tell us about the last time it happened?
selection of the most appropriate assistive technology or • What, if anything, have you done to solve the problem?
"support solution" for that individual's functional gain and life • Problem Awareness (Latent, Active, Vision)
quality. • What are your issues with the solutions you’ve tried?
• What role would you play in choosing / implementing the
Two-sided vs. One-sided Ventures One-Sided Ventures: solution? Know Who types.
• Sale of Physical Product • What do you think of our proposed solution?
• Seller: Pascual Labs • What do you think of the MVP? (from the previous venture)
• Buyer: Patients • What resources / support would you be able to provide to
• Product: Ascof Lagundi
• Software as a service / Subscription One-day Validation Tips
• Seller: Dropbox • You are responsible for doing one-day validation on the
• Buyer: Users venture proposal that you posted.
• Product: Cloud Storage • Two-sided ventures need validation on both sides
• Hardware as a service / Rental • Use the Know Who and self-profile lists to get contacts. Ask
• Seller: Combinado Kitchens for referrals if you don't direct contacts.
• Buyer: Chefs / Caterers • Family members and friends will be biased. Avoid or get
• Product: Kitchen Equipment / Facility additional validation from additional Know Who (you can ask
your family of friends to refer you).
Two-sided vs. One-sided Ventures Two-Sided Ventures: • You are more likely to get a response from a warm call
• Olx.ph (when you are introduced by a common acquaintance) than a
• Buyers look for products and contact sellers cold call.
• Buyers can browse postings and contact sellers for free. • Use email rather than Facebook. It's more formal and older
• Sellers post product information contacts are more likely to be checking their email than their
• Sellers pay olx.ph for special services. Facebook messages.
• Advertisement-driven free mobile apps • In your initial request, go straight to the point. Use the
• App users use the app services but watch the value proposition from your venture proposal in your email.
advertisements my first line would be "Would you be interested in ?”
• No download costs or subscription fees. • Confirm the problem first.
• Advertisers post product information on the app. • Focus on feedback and understanding customer needs, not
• Advertisers pay the app developer fees based on the on selling your product.
number of times the ad is viewed. • Probe for related or more important needs/problems
• Check availability for follow-up meeting next week
Problem Awareness • Success criteria: Confirmation of the problem, availability
> Latent for follow validation
• Customer has problem • Bring a buddy along for moral support
• Customer has a problem and understands they have a • Unless a patent for your technology has already been filed,
problem. do n disclose how your technology works but only the results
or benefit. When in doubt, ask your facilitator.
> Active
• Customer actively searching for a solution Common Validation Issues And How To Fix Them
No Know How, or no specific name in Know How
> Vision • If you are involved in the R&D for this technology, list
• Customer has an idea what the solution looks like. yourself (and your affiliation) as the contact.
• Customers may have improvised solutions. • Check out the Know How and Individual Profile board for
• Customers may be prepared to pay for a better solution. classmates and other people who might have the expertise to
help us develop the technical solution and/or address
One Day Market Validation technical issues for this venture.
• is the process of determining whether your product is of • Check out the KnowWho board and Individual Profile board
interest to a given target market. for your classmates' contacts.
• Market validation involves a series of with people in your • If your classmate worked in a company which might be your
Know-Who venture board, and often takes place before possible customer, ask your classmate (via FB group) to
executing your idea or concept. nominate a contact.

One Day Validation Vague initial customer, non-revenue customer

• Name / Company / Role • Your Know Who needs to be a customer, i.e. the one who
• Verify the Problem will pay for your product, not just a beneficiary or an end user
• Ex: App that does but will be supported by ads Selecting the Right Team: Team Formation
• You also need to identify a potential advertiser/sponsor as The success of any kind of social epidemic is heavily
Know Who dependent on the involvement of people with a particular set
• Ex: Service where you give out financial incentives to users of social gifts.
• You also need to identify a potential sponsor as Know Who - Malcolm Gladwell

Know Who doesn't match target customer Why Are Some Teams Smarter than others?
• Check out the Know Who board and Individual Profile board DO’s
for your classmates’ contacts. • Members contribute equally to discussion.
• If your classmate worked in a company which might be your • Communicate a lot.
possible customer, ask your classmate (via online group) to • Consider and keep track of what the rest of the team feel,
nominate a contact. know and believe.
• Have both men and women.
Wrong TRL or technology may not be feasible
• Your Know How contact needs to be accessible (instead of DON’Ts
just somebody in a paper/article abroad that you googled) • One or two people dominate.
• The TRL level should be based on the accomplishment Know • Work mostly individually.
How. Do not base it on the work of researchers abroad that • Ignore the emotions of other members.
you do not have contact with.
• Talk to a professor or search the Individual Profile board for Rules for hiring your startup’s next great employee (and
a classmate who can help you connect your proposal to avoiding the duds)
ongoing or past R&D. - Saying ”NO” to the right person > saying “YES” to the
wrong person.
Missing science - Know what you want; don’t overlook what you really
• Proposed solution might not be technically feasible. need.
• Find a research paper that demonstrates the scientific - Ask real life questions.
principle on which your proposed solution is based.
Team Roles
Missing half of the market Connector / Salesman
• Example proposed venture: parking lot availability • Reduce customer / market risk
• Proposed Know Who: driver • Liaison to Know Who
• You also need to identify a parking lot owner/manager as • Customer Problem
Know Who • Day in the life of the customer
• Example proposed venture: Recycling of waste • Customer ROI
• You need to identify a company that produces the needed • Validate product features / design with customers
waste material in significant quantities. • Revenue / sales projection
• You also need to identify a company that will pay for and
use your recycled outputs. Maven
• Reduce Technical risk
I only have a vague proposal; I don't know where to start • Liaison to KnowHow
• Post it anyway so I can give you guide questions • Product Specs
• Identify a specific customer from your Know Who or a • Development timeline
classmate's Know Who • Operations / production requirements and costing
• Describe a day in the life of that customer • Intellectual Property Management
• Imagine solving your customer's problem manually
• How would you automate your manual solution? Scrum Master
• What tools/technology will be useful in the manual • Reduce implementation risk: Remove obstacles that affect
solution? the team
• Ask a student who is part of an R&D lab (or who has an • Review training materials on scrum
ongoing thesis) to let you sit-in on their group meeting. • Facilitate preparation of backlog, sprint plan
• Facilitate Retrospective
I have a proposal but I'm worried I can't do its one-day • Track and document progress
validation • Internal communications and scheduling
• One step at a time, let's identify the opportunity first
• If you're afraid of rejection, Designer
• Do the rejection therapy exercise • Optional: For consumer products
• Review the Know Who tips • For aesthetics and user experience
• Visual interface design or industrial design
 • Quantitative: If each unscheduled downtime costs the
Recruiting Qualifications company P80K and there are 7 unscheduled downtime per
Connector / Salesman: Address key market issues year on average that can be eliminated with the system, then
• Complete one-day validation Maven / Hacker: Address key the annual cost savings is P560K.
technical risks • Analytics for tracking and improving HR performance
• Has relevant training or work experience in technology reduce losses due to staff turnover and reduce expenses for
• Knowledgeable in sourcing, costing of relevant technology training new staff
Scrum master • Quantitative: If each staff turnover costs the company
• Demonstrated past leadership roles Designer / Artist: P100K in hiring and training expenses as well as reduced
Address for user experience productivity, and the system can reduce the turnover from 12
• Complete past design projects to 4 per year, then the customer can save P800K per year.

Preparing for Product and Service Design The steps:

Review your User Story.
Design, Feature and User Stories Product increase customer’s revenue?
Apple would love to believe it’s all “Eureka.” But Apple Product decrease customer’s cost?
produces 10 pixel-perfect prototypes for each feature. They Align Value Proposition with Customer ROI.
complete and are winnowed down to three, then one,
resulting in a highly evolved winner. Value Chain Pyramid
Where on the value pyramid is your current product /
Because Apple knows the more you complete inside, the less venture?
you’ll have to compete outside. What would your venture look like if you moved up the next
step in the pyramid?
User Story
• captures a description of a product or service from an end- Checklist For LOFI MVP to verify Value Proposition
user perspective. Physical Product
• It describes the who (type of user), what they want and • User story
why. • Specs of proposed product
• It helps to create a simplified description of a requirement. • Method for verifying the specs
• Comparison of proposed product specs to competing
Usual User Story Set Out product specs
• AS A <type of user (WHO)> • Optional: Product mockup
Several stories may be needed to completely describe the • Customer ROI
product. • Key components and sourcing
• I CAN <some goal (WHAT)> • Total Cost of ownership Software / Service
The sequence of user stories may be important and needs to • User story (can be built and validated by demo day)
be specified. • User Interface (screen layouts) and / or process flow of
• SO THAT <some reason (WHY)> proposed software / services
Accompanying illustrations, photos and diagrams are often • Customer ROI
helpful. • Key resources and sourcing
• Total cost of ownership
Customer Return on Investment (ROI) Return on investment
(ROI) is a metric that compares how much a team earns to Design Process Goals
how much it costs. • Maximize inputs from the team and from customers.
• Prioritize the user stories that will be included in the next
Customer Return on Investment (ROI) MVP For software ventures, the next MVP should be released
How will your product increase your customer's revenues? and customer-validated before demo day.
• Fertilizers increase the yield of a farm • For other ventures, next MVP should be implementable in a
• Quantitative: If yield is currently P100K/hectare, a 10% yield funding proposal: 6 months to one year timeline and < P5M
increase results in P10K/hectare revenue increase budget for next MVP.
• Online classified ads bring customers to a seller • Explore as many options as quickly as possible.
• Quantitative: If ads bring 2000 new customers per month • Repeat the process as a team if multiple options are
with average purchase of P800/customer, then revenue available implementing a design feature or user story.
increase is P1.6M/month. • Agree on evaluation metrics before discussing options.
• If there is no unanimous decision from the team, the
How will your product decrease your customer's costs? customer decides.
• Instrumentation for preventive maintenance reduce losses
due to unscheduled equipment downtime
Developing a Storyboard
• Understand the problem
• Sketch complete user story
• Scope MVP
• Organize notes and mind-map
• Crazy eight
• Critique
• Organize ideas intro storyboard

Understand
• Review opportunity / market
• User story before and after your product
• Show lightning demos (design pegs)
• Competitors’ product and non- competitive products that
solve a similar kind of problem in a different market.
• Show existing user research
• Results from one-day validation and other customer or
literature interviews.
• Decide evaluation metric(s)

Human-Centered Design Principles

Visibility - Can see the state of device and possible actions.

Feedback - Tactile, audio, visual
- Needs to be immediate and synchronized with user action.
Affordance - Perceived and actual properties of an object that
gives clues to its operations
Mapping - Relationship to controls and their effect Constraint
- Reduce error by restricting the kind of interactions that can
take place
Consistency - Designing interfaces to have similar operations
and use similar elements for achieving similar task
- Enables people to quickly transfer prior knowledge to new
contexts and focus on relevant tasks.