POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Written Report in Entrepreneurial Marketing

Management

GROUP 2
Belarmino, Mon Kaizzer

Cascante, Victoria

Delos reyes, Joan

Go, Andrea Clarice

Inobaya, Mico Jay

Ocampo, Kyle Michri

Pe benito, Mark Jonas

Punzalan, Riza

Quitaleg, Renz Ian

Solayao, Tricksy Mhae

Tabuena, Reewen

Teh, Lei Robby

Submitted to: Dr. Florian Camit

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Strategy
An adaptation or complex of adaptations (as of behavior, metabolism, or structure) that serves
or appears to serve an important function in achieving evolutionary success

Marketing strategy
Marketing strategy is used by different companies to collaborate with their consumers. It is
also employed to aware the customers about the features, specifications and benefits of
company’s products. It is basically focused on encouraging target population to buy those
specific products and services. The marketing strategies might be totally innovative or they can
be previously tried or tested strategies. Effective marketing strategies help to get ahead in the
competition.

TYPES OF MARKETING STRATEGIES

There are different types of marketing strategies available. Picking up a marketing strategy
includes analyzing the needs of your business, your target audience and specifications of your
products.

TWO MAIN TYPES OF MARKETING STRATEGY

1. business to business (b2b) marketing
2. business to consumer (b2c) marketing

* The most common form of marketing is business to consumer (b2c) marketing.

DIFFERENT TYPES OF MARKETING STRATEGIES

1. Paid advertising - this includes multiple approaches for marketing. It includes
traditional approaches like tvcs and print media advertising. Also, one of the most well-
known marketing approaches is internet marketing. It includes various methods like
ppc (pay per click) and paid advertising.
2. Cause marketing - cause marketing links the services and products of a company to a
social cause or issue. It is also well known as cause related marketing.
3. Relationship marketing - this type of marketing is basically focused on customer
building. Enhancing existing relationships with customers and improving customer
loyalty.
4. Undercover marketing - this type of marketing strategy focuses on marketing the
product while customers remain unaware of the marketing strategy. It is also known as
stealth marketing.
5. Word of mouth - it totally relies on what impression you leave on people. It is
traditionally the most important type of marketing strategy. Being heard is important in

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business world. When you give quality services to customers, it is likely that they’d
promote you.

6. Internet marketing - it is also known as cloud marketing. It usually happens over the
internet. All the marketing items are shared on the internet and promoted on various
platforms via multiple approaches.
7. Transactional marketing - sales is particularly the most challenging work. Even for
the largest retailers, selling is always tough especially when there are high volume
targets. However, with the new marketing strategies, selling isn’t as difficult as it was.
In transactional marketing the retailers encourage customers to buy with shopping
coupons, discounts and huge events. It enhances the chances of sales and motivates the
target audience to buy the promoted products.

MARKETING CONCEPTS

 Production concept - the idea of production concept – “consumers will favor products that are
available and highly affordable”. This concept is one of the oldest marketing management
orientations that guide sellers. Companies adopting this orientation run a major risk of focusing
too narrowly on their own operations and losing sight of the real objective.
 Product concept - the product concept holds that the consumers will favor products that offer
the most in quality, performance and innovative features. Product quality and improvement are
important parts of marketing strategies, sometimes the only part.
 Selling concept - the selling concept holds the idea- “consumers will not buy enough of the
firm’s products unless it undertakes a large-scale selling and promotion effort”. Here the
management focuses on creating sales transactions rather than on building long-term, profitable
customer relationships.
 Marketing concepts - the marketing concept holds- “achieving organizational goals depends
on knowing the needs and wants of target markets and delivering the desired satisfactions
better than competitors do”. Here marketing management takes a “customer first” approach.
Under the marketing concept, customer focus and value are the routes to achieve sales and
profits.
 Societal marketing concept - questions whether the pure marketing concept overlooks
possible conflicts between consumer short-run wants and consumer long-run welfare. The
societal marketing concept holds “marketing strategy should deliver value to customers in a
way that maintains or improves both the consumer’s and society’s well-being”. It calls for
sustainable marketing, socially and environmentally responsible marketing that meets the
present needs of consumers and businesses while also preserving or enhancing the ability of

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future generations to meet their needs. The societal marketing concept puts human welfare on
top before profits and satisfying the wants.

FACTORS TO CONSIDER IN FORMULATING MARKETING STRATEGIES AND

TACTICS

1. CUSTOMERS
 MARKET
 EMERGING OPPORTUNITIES
 INDUSTRY
 IMPENDING THREATS
2. COMPETITION
 COMPETITOR'S STRATEGIES AND TACTICS
 COMPETITOR'S STRENGTHS AND WEAKNESSES
 COMPETITOR'S STRATEGIC FOCUS
3. COMPANY
 COMPANY'S STRENGTHS AND WEAKNESSES
 INDUSTRY STRUCTURE AND THE FIRM'S COMPETITIVE POSITION
 PERSONAL VALUES AND PREFERENCES OF LEY OWNERS AND EXECUTIVES
 SOCIETAL EXPECTATIONS

THE PROS AND CONS OF BUYING AN EXISTING BUSINESS

Pros:

1. The Product or Service is Already Market Tested

When you buy an existing business, you’ll already have a good idea of how well the market has reacted
to the products or services offered. For example, if you buy a restaurant that’s well-reviewed and is
producing good sales numbers, you’ll know that local customers already enjoy the food.

Due to this, it’s important to conduct your due diligence; knowing that the product or service is already
well-received should play a part in your final decision.

2. You’ll Significantly Reduce Startup Time

Not only are the products or services from an existing business already market tested, but you‘ll also be
in the position to start selling quickly. For example, if you’re starting from scratch and want to open a
retail store, you’ll need to purchase inventory, find suppliers, hire employees, and find a location before
you open your doors to customers.

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When you buy a business, the previous owner will have already done much of the work for you. Of
course, you may need to hire additional staff members, remodel the location (or look for new real
estate), and upgrade equipment, to name a few examples. Still, many tasks will already be completed
for you as the business buyer, allowing you to focus on improving aspects of the business and making
it your own.

3. The Brand Is Established

Brands are vital for establishing and expanding your customer base and market presence. Starting a
new brand in a crowded marketplace isn’t an easy task. Many entrepreneurs struggle to grow their
brands and draw attention to their products or services, especially during the startup phase. Still, over
time your brand should gain momentum. If you buy an established business, however, you’ll often
inherit its brand and market share, which can save you considerable time and money.

4. It’s Easier to Secure Financing

It’s often easier to obtain additional working capital, especially traditional financing, for an established
business. For example, a working capital lender will be able to look at revenues, profits, and other
financial statements to determine the viability of your business. This can reduce risks for lenders, and if
the existing business is healthy, it will increase the likelihood that they’ll lend you money.

5. Access to the Business’s Customer Base

Since this business has already been up-and-running, there should be an existing customer base that
will still make purchases under your ownership. As a startup owner, it can be hard to spread the word
about your new business, so it can be beneficial to buy a business that people know about.

1. You’ll Get What You Paid For

Few business owners are going to sell a flourishing business for a cheap purchase price. If a business is
thriving, the previous owners will likely demand a hefty price, which is understandable. Due to this,
you should closely compare the startup costs versus the cost of buying an existing business. In the long
run, you might save money by establishing your own business and brand, but it’ll ultimately depend on
the quality of the existing business.

On the other hand, if you buy a cheap business, there’s a risk that the brand is tainted, or that markets
have rejected the product or service. Resuscitating a bad brand or a struggling business can be very
difficult. In such cases, you should ask yourself if the business is worth acquiring even at a very
affordable price.

2. Significant Changes May Be Necessary

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You may purchase a business hoping that it’s essentially a turnkey establishment but end up dealing
with a wide range of issues. It’ll be hard to examine how well the business is operating until you get
behind the wheel yourself.

Some warning signs to watch out for:

 Staffing problems, such as disgruntled employees or frequent turnover.

 Equipment that is outdated or prone to issues.
 Unreliable suppliers.

Unfortunately, as you try to implement changes, you may end up creating new problems. For example,
employees may resist policy changes and even quit. To avoid these issues, we suggest trying to find out
as much about the existing business as possible, so that you don’t regret your decision.

3. You Could Get Scammed

In addition to existing issues, you may get scammed by unscrupulous sellers. It’s possible that the
previous business owner misrepresented financial data, glossed over needed repairs, or didn’t provide a
complete picture of the overall operations. In this situation, you may have legal recourse, but legal fees
can quickly add up. To avoid getting scammed, review all legal documents with your lawyer, and
conduct considerable research prior to buying an existing business.

4. It Can Be Challenging to Make It “Your” Business

When you buy an existing business, you’re stepping into someone else’s vision. Most likely, you’ll
have to work to make it your own, and make changes that reflect your goals. For example, you may
want to offer new products/services, or change up the décor.

Unfortunately, these changes can cost time and money. In some cases, the business may never feel like
it’s truly yours, because you didn’t start it. If you worry that this could be a possibility, you might be
better off waiting until you’re able to start your own company.

5. The Business Might Have a Bad Reputation

If the business has experienced PR issues; it could hurt your sales going forward. From bad customer
service to legal troubles, these mistakes might damage your entrepreneurial career, even if you didn’t
open the business when they occurred. If patrons already associate the business with negativity, they
might not change their mind because there’s a new owner (or, they might not even find out about this).
Even if there are other benefits to buying an existing business, purchasing one with a less-than-stellar
reputation won’t make them worth it.

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ADVANTAGES AND DISADVANTAGES OF STARTING A BUSINESS

Advantages

 Independence - as a business owner, you’re your own boss. You can’t get fired. More
importantly, you have the freedom to make the decisions that are crucial to your own business
success.
 Lifestyle - owning a small business gives you certain lifestyle advantages. Because you’re in
charge, you decide when and where you want to work. If you want to spend more time on
nonwork activities or with your family, you don’t have to ask for the time off. If it’s important
that you be with your family all day, you might decide to run your business from your home.
Given today’s technology, it’s relatively easy to do. Moreover, it eliminates commuting time.
 Financial rewards - in spite of high financial risk, running your own business gives you a
chance to make more money than if you were employed by someone else. You benefit from
your own hard work.
 Learning opportunities - as a business owner, you’ll be involved in all aspects of your
business. This situation creates numerous opportunities to gain a thorough understanding of the
various business functions.
 Creative freedom and personal satisfaction - as a business owner, you’ll be able to work in a
field that you really enjoy. You’ll be able to put your skills and knowledge to use, and you’ll
gain personal satisfaction from implementing your ideas, working directly with customers, and
watching your business succeed.

Disadvantages

 Financial risk - the financial resources needed to start and grow a business can be extensive.
You may need to commit most of your savings or even go into debt to get started. If things
don’t go well, you may face substantial financial loss. In addition, there’s no guaranteed
income. There might be times, especially in the first few years, when the business isn’t
generating enough cash for you to live on.
 Stress - as a business owner, you are the business. There’s a bewildering array of things to
worry about—competition, employees, bills, equipment breakdowns, customer problems. As
the owner, you’re also responsible for the well-being of your employees.
 Time commitment - people often start businesses so that they’ll have more time to spend with
their families. Unfortunately, running a business is extremely time-consuming.
 Undesirable duties - when you start up, you’ll undoubtedly be responsible for either doing or
overseeing just about everything that needs to be done. You can get bogged down in detail
work that you don’t enjoy. As a business owner, you’ll probably have to perform some
unpleasant tasks, like firing people.

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