The 6 P’s of ENTREPRENURESHIP Page 185

 Profit  Price  Production  People  Productivity  Promotion

 The 4p’s or Marketing were Product, Place, Price and Promotion. These you will include in your Business plan with your S.W.O.T  Today's Study will help you know you product/service better and help make your vision clear. And begin to better put your plan on paper

 The major goal of the entrepreneur, the primary incentive for mobilizing resources, taking risks, and starting ventures  Even not-for-profit organizations must creating enough income to cover operating expenses and provide funds  Efficient use of resources lowers production costs, and benefits consumers  Profit can be like a scorecard—if the score is low, it might be time to review the production and distribution process, the pricing policy, or the promotional campaign  The profit formula is:   profit = (price of each unit x quantity) – costs

 Total profit = total revenue – total cost  Total revenue = price of each unit x quantity sold  The best price to charge is the one that allows you to earn the maximum profit, not sell the most  Knowing what the customer is willing and able to pay is essential in determining price

 To set a reasonable price, an entrepreneur should ask the following questions:   What does the customer perceive the value of the good/service to be?  Are there any similar products on the market?  What price is the competition asking?  Look at the “Pricing Strategy” Table page 189  Q; What strategy will you use in your plan, why?

 Production is the mobilization of resources to yield a product/service that consumers want or need  The entrepreneur has to organize employees, materials, and equipment  Resources must be used as efficiently as possible  Production is measured in terms of output per worker employed:   Output per worker = total output / number of workers

 Promotion is the nuts and bolts of getting your message out to the public. (advertizing)  Getting the right message out to your core customers (Target Customer) is a big task.  You must try to find a balance between what your competitors are saying and what you need to say to give your product a positive image. ( the ‘channel’ to the customer)

 Pg and 3  Pg and 5  Pg ,2 and 3  Now write out in as much detail as possible how you will; Price -your product or service- strategy Promote-advertise, what “Channels of Ad.” you will use to get noticed. Place- where you will locate. Physical/virtual. How you will get your product to the customer.