ACTIVITY SHEET IN BUSINESS ENTERPRISE SIMULATION

Third Quarter

Name:_____________________ Grade Level and Section:_____________

School: _____________________ Date: ___________________________
Teacher: ____________________ Score: __________________________

I-Title: MARKETING PLAN

II-MELCs: prepare a marketing plan that will describe the product offering, the value
it brings to the consumer, and the subsequent tactical plan on how to reach consumers
(4Ps),and conclude with a sales forecast (ABM_BES12-Id-j-c-5)

III-Discussion

Marketing Study
The marketing study details the implementation activities for the marketing
objectives of the enterprise groups. It is assumed that the chosen environments for the
business projects are the respective school or residential communities of the learner-
entrepreneurs. Selected guidelines for other environments are also given.

Target Market Description

Today’s business environment already draws marketing plans for an identified
market. For the Business Enterprise Simulation course located in school or residential
communities, the demographics for the target or identified market may be easier to
obtain. The market segmentation, market targeting, and market positioning data may
be available also.
Mendiola, Tanchingco, and Agustin (2017) include demographics, lifestyle or
demographics, behavior, occasion, and usage for the market segmentation
characteristics. Since the school or residential environment is the primary location, the
needs of the population in these communities may not differ too much. Demographic
traits, such as age, gender, occupation, and education may be used to segment school
population, as the teacher, service personnel, and even parents may be included in the
identified market of the learner-entrepreneurs. For residential communities, family size,
religion, and nationality may be additional traits to age, gender, occupation, and
education.
Again, interests and activities (psychographics) of the identified markets in
school communities may not differ, as consumption or purchase of the services or
products offered by the enterprise groups is done within the school hours. For
residential communities, psychographics may differ, because of the diverse lifestyle of
the population. The same may be true for behavior and occasion features, as the school
or residential communities may be diverse, more often due to demographics. For
example, most instructors, students and service personnel usually purchase
consumables such as food and supplies outside the school environment. The same is
true for their service needs. Again, because of the time spent inside the school
perimeter, purchase or service delivery needs for given occasions may be limited,
considering that the enterprise business implementation is only for a specified period.
The usage behavior feature describes regular users, nonusers, occasional users,
first-time users, and even light-, medium-, or heavy users, based on purchase volumes.
For the Business Enterprise Simulation course, marketing research may be
conducted to complete the target market identification section of the marketing study.
Primary data gathering from the identified market may be done through simple surveys,
experiments, or observational research. For example, interviews with the school
cafeteria or bookstore personnel may yield valuable data for the target market
description. Observing the behavior of school population at different times during a
school day may also give statistics on the target market.
Chan Shio, Briones, Mallari, and Garces (2017) state guidelines for the conduct
of the research, inclusive of presentation and analysis tools for data gathered, in
Business Mathematics for Filipinos textbook.

Product or Service Description

As mentioned earlier only the service and merchandising sectors are considered
for the course. Although this may limit the product or service choices of the learner-
entrepreneurs, product decision guidelines cited by Mendiola, Tanchingco, and Agustin
(2017) assist the enterprise groups in their choices.
For the marketing study, pictures, graphic illustrations, or visual representaions
may be required for the product or service description. Features, such as colors and
sizes available for clothes should be included. When and if product or service standards
of government or private sector associations are on hand, these should be provided as
well.
A product is tangible, so its features and characteristics are observed by the
senses. Product aroma, color, and texture may be perceived. A service is intangible, so
its features and characteristics may change with the client’s experiences of the same.
Aside from intangibility, services are also characterized by variability,
inseparability, and perishability. For food service projects, for example, a cook preparing
a snack from a standard recipe at the start of the day may not be able to replicate the
same snack in the afternoon, it is possible that the ingredients may have come from
different suppliers, that the equipment for operation was changed, or that the same
cook has lower energy levels for the afternoon preparation. Even the same customer
coming from a second purchase in the afternoon may have a different experience of the
same service because of his mood or the temperature differences of the time of day.
Service providers, or those who deliver the service, cannot be detached or
distinguished from the service. The beauty salon visit by a customer may change if
his/her favorite hairdresser is not available or if the shampoo attendant is new or
experienced. Finally, the delivered service cannot be stored for use at a different time
or sold to other clients. For example, although the massage chair or attendant may be
the same, the massage experience cannot be kept for future use by a client. The
experience of the massage is expected to ‘perish’ or fade after some period.
Service businesses take care of standardizing or keeping certain quality
standards for the delivery of their services, but the intangibility, variability,
inseparability, and perishability concepts have to be addressed on a continuous basis.
For the Business Enterprise Simulation course, it is helpful for service projects to
describe the features of their services through graphic illustrations, testimonials from
users, and even trial packages for potential clients.
The operations study for the Enterprise Business Plan also includes a product or
service description. The product or service description in the operations study focuses
on the use or quality standards of the product or service. Whenever available, the
materials and/or supplies used the manufacturers, distributors, and other technical
features of the product or service is used in the operations study.

Pricing Strategies
Price dictates the revenue figure in the Enterprise Business Plan. It is the amount
of money exchanged for product purchase or the delivery of a service (Mendiola,
Tanchingco, and Agustin 2017). For merchandising businesses, the price of the
products may be the purchase cost plus the markups and margins estimated for the
‘buying and selling’ transactions. It is helpful to review Business Mathematics for
Filipinos (Chan Shio et al. 2017) for pertinent ‘buying and selling’ computations.
Breakeven point and the use of fixed, variable, and unit cost is helpful in
computing prices for both product and service units. Mendiola, Tanchingco, and Agustin
(2017) list the following approaches for determining selling prices:
1. Cost-oriented pricing, where a cost serves as a basis for pricing products
a. Cost-plus pricing, where a specified amount is added to the unit cost
b. Standard markup pricing, where a specific percentage is added to the unit
cost
2. Target profit pricing, where the desired profit is added to the unit cost
3. Competition-based pricing, pricing strategy that utilizes prices of competitors, the
index of which same, higher or lower price is determined by the owner-
entrepreneur.

Location or Place Strategies

As this Business Enterprise Simulation course assumes the chosen locations of
the learner-entrepreneurs to be their school or residential environments, the location
strategy is a given variable. However, the place strategy should also consider
distribution types. For example, most fast-food outlets have delivery services, so
their locations are not constraints for reaching a bigger consumer base than that
dictated by their locations. Some web-based businesses do not have physical
locations anymore, so their ’virtual’ locations allow them to sell to diverse and wider
client bases.
Mendiola, Tanchingco, and Agustin (2017) list the following distribution types to
expand location-based client populations:
1. Direct distribution, through house-to-house or stall setups
2. Indirect distribution, through agents or intermediaries
3. Hybrid distribution, a combination of the direct and indirect approaches
It is recommended that physical setups be used for the course, and rental fees are
charged for use of school facilities used by the enterprise groups. The use of agents or
intermediaries may be determined by the school administrator, as this approach may
require legal documents to implement. Web-based marketing approaches is a dynamic
norm that is continually growing, but the delivery service required for the approach may
be prohibitive for the business incubation projects.
The learner-entrepreneurs should consider the nature of their products and services,
for the location, place or distribution strategies. Perishable items, may, for instance
require special storage and display facilities. Dry goods, although easier to transport
and store, may also benefit from display counters. Service units may be applicable for
indirect distribution approaches, but there may be additional expenses for the method.
Examples are massage attendants who deliver their services in consumer residences.
The price for the service is higher when availed through a fixed facility because of the
transportation expense incurred by the service provider.

Promotion Strategies
Promotion Strategies utilize tools that are designed to communicate with the
buyer population. Some communication platforms cited by Mendiola, Tanchingco, and
Agustin (2017) are advertising, public relations, personal selling, sales promotion, and
direct marketing.
As the Business Enterprise Simulation course has time and location constraints,
costly promotion tools are not recommended. Perhaps the most applicable tool for the
learner-entrepreneurs would be sales promotions through discounts, complimentary
gifts, and extra units for specified periods. An example is the sale at discounted prices
of baked goods and other consumables before the closing time of sales outlets.

Project Sales Volume and Value

This section would involve forecasted figures for the marketing activities for the
period covered. The forecasted volume is important for the purchase orders of the
operations team. The forecasted value is the product of the volume, multiplied by the
price per unit.

IV. Activities
Simulation Activity 5: Management Study
Instructions: Answer the following questions based on business opportunity idea you
have had identified in your community.

1. What is your business name?

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2. Are you a sole proprietor?
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3. Do you have employees? How many are they?
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4. What are the job description of your employees?
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5. Attached below the organizational chart of your business that show the work
relationship of your employees.

Simulation Activity 6: Marketing Study

Instructions: Answer the following questions based on business opportunity idea you
have had identified in your community.

1. What will you sell? (product or service description)

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2. Who will buy it? (target market description)
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3. How much will you charge for it? (pricing strategy)
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4. Where will you sell it? (location or place strategy)
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5. How many customer will you have? (projected sales volume and value)
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PROMOTION STRATEGY
Instructions: Attached below or draw a graphic illustration (poster) of your product.
Put product details such as suggested retail price, weight, brand name and logo and
etc.

I. Closures
At the end of the chapter, write two or three sentences to complete the following:

I realized that:

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I resolved that:
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VI. References
Victoria Garalde-Orjalo, Erlinda C. Pefianco, ED.D: Business Enterprise Simulation:
Business Incubation and ABM Integration

Prepared by:

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Subject Teacher