Many entrepreneurs would agree with me when I say that marketing is essential in the success of a business. It is one of the main growth drivers of business and in fact where it all starts: knowing what the market needs, having a compelling product to serve that market gap and clear differentiating proposition to convince your target why they should buy your product/brand. For some, it may even be considered as the heart of business because through marketing, products are developed, differentiated and presented to the consumers in the most effective way to lead into the actual purchase of the product. The target market should be attracted to your product.
Marketers and business people know that with a clear unique proposition, one can already work on the 4Ps of Marketing: Product, Price, Place and Promotion. In order to communicate the products and services effectively, entrepreneurs should focus on these Ps for their marketing strategy.
My advice to micro-small enterprises is to learn your marketing. This will help you compete and level up in the game of business.
One of our angelpreneurs and the marketing guru Josiah Go, who happens to celebrate his birthday yesterday, guested in our Go Negosyo sa Radyo radio program in DZRH hosted by our Executive Director Ramon Lopez and Cheska San Diego to discuss the importance of marketing and how it can help entrepreneurs in their ventures.
It is a dream for many entrepreneurs to produce a product that will break new grounds in the market. A game-changing product that caters to the current unserved or underserved demand in the market or one that would serve a latent demand that can start a trend. Josiah agrees on this as he shared that entrepreneurs must look for the unmet needs of the market and utilize market driving strategies. In order to have a long-lasting business success, entrepreneurs must recognize the demand of the public in a long-term period. They must look for opportunities, pushing beyond the current demand of the market. Entrepreneurs who are market driving, drives the market into new and innovative products with unique value. This is the total opposite of market-driven entrepreneurs who seek to fulfil only the current needs and play in the current competition.
Josiah shared, “Malaki ang kita sa nakikita mo pero hindi nakikita ng iba.” You can make it big in business opportunities that are not seen by others. Entrepreneurs must always look and think innovatively in order to be first market-movers. But Josiah also reminded that first movers are also first risk-takers.
For those who have business ideas now that needs to be assured if it will be successful in the market, Josiah leaves two questions to validate the business idea: First, Is there a compelling reason for the product? And second, what is the compelling reason to stay in the business? These must be asked by the entrepreneurs in order to evaluate and validate if their ideas can conquer markets.
One listener asked us on how she can sustain the business she started. She started selling lumpia, polvoron and other merienda but her business all ended. Josiah answered by sharing the 5-point test he uses in the mentoring sessions: 1. Demand of the product. 2. Price affordability. 3. Low cost of manufacturing. 4. Stable cash flow. 5. Execution of business plan.
For the demand of the product, micro entrepreneurs must check if their products are needed. For example, if you are near a construction site and there are no nearby stores, there is a demand for food. Perhaps, one entrepreneur can supply lunch and snacks to those who are working in the area. But she must also consider the price. Her products must be affordable enough in order to be patronized by the public.
If you are selling at a low affordable pricing, you must ensure that you have a low cost structure to have a sustainable margin. This can ensure a stream of good positive cash flow. Relatively, by cash flow, we also mean that sales are collected and real cash is generated to sustain operations.
Lastly, the execution of business. Consider all factors that will make your business attractive to the market because “you are as good as your last product.” So in order to continuously enjoy the market of your business, you must constantly reinvent and innovate on your products and your business model.
Entrepreneurs must continue to listen to the market, to search for opportunities and blaze the trail for its next winning product. These are the things we wish to share with all entrepreneurs through the different programs we organize. We invite everyone to follow us in our summits and seminars, Facebook and Twitter, TV and DZRH radio program (Friday at 3PM) to learn from the free mentoring sessions we provide.
From the Negosyo Seminar (Negosem) last week where our participants learned from inspiring experts and Angelpreneurs Ardy Roberto and Mylene Abiva, and our AFFI Partners Executive Director Raffy Canare, Mark Anthony Liu and Ferdie Laureta, we also had yesterday our Magandang Business Advice on Franchising with AFFI Chair and guru Butz Bartolome and his team of franchisors: Ferdie Laureta (Farmacia ni Dok), Mark Liu (Affinitea), Jean Uvero (Nail It!), Anne Celeste (Crystal Clear), Roselin Pagunsan (Big Apple Express Spa), Ricardo Cuna (Fiorgelato) and Anne Guallar (Seaoil). Thanks for joining us!
Recently, Go Negosyo won a Gold Anvil Award in the recently concluded 50th Anvil Awards held last April 17, 2015 at the Marriott Grand Ballroom. We would like to thank the organizers for recognizing the efforts of Go Negosyo in promoting its advocacy to the whole nation. We share the recognition with all our partners and advocates. This inspires us more to push further the entrepreneurship advocacy.