INFORMATION SHEET NO. 9.

3-1
THE 4M's OF OPERATIONS IN ENTREPRENEURSHIP

Learning objectives: After reading this information sheet, you must be able to:
Determine the 4M's of Operations.
Illustrate and explain the 4M's especially with examples.
Show or prove the value or efficiency of each M's in a business operation.

Introduction:
4M's of Operations mainly represent factors that influence on results of any concern
process. Operations Management is about delivering products and services to customers to meet
or surpass the expectations. It is designing, developing, and executing the Enterprise Delivery
System, from sourcing of the necessary input to the transformation of these input into the final
output, which come in the form of goods or services or both, must carry all the features and
attributes that customers are looking for. All operations managers must, therefore, begin with the
customer's wants and desires in mind. These wants and desires can be classified into customer
outcome expectations that are crucial to the operations function.
Models combine of 4M and IPO in a specific environment or situation.
The 4M's of Operations mainly represent factors that influence the results. of any concern
process. This was used to make product design and quality defect prevention and to identify
potential factors on cause and overall effect. In manufacturing industries this method was used to
apply on production control, improvement, overall efficiency measurement, processes, and
design.
The 4M's of operation in relations to business opportunity means that the four critical domains,
usually attributed to manufacturing, those are: man, machine, material and method work
together. These four critical domains are also applicable to business opportunities since business
is in essence tied to manufacturing as well. When putting up a business, manpower is critical as
well as the other elements. The businessman must take all of those into account.
The 4M's of operation is an important part of the business plan because it simply states the
details in operating the business.
It can be defined as a plan prepared by a component of an organization that clearly defines
actions it will take to support the strategic objectives and plans of upper management. However,
to fully understand operational plans, we should first look at the overall planning process within
a business.
Let us now describe the 4 major domains of 4M's of Operations in relation. to business
opportunity.
1.) Method is a detailed procedure for accomplishing something. It is a systematic way of doing
a particular job. Method was used in business when developing or innovating a new products or
services, expanding your business enterprise, searching for skilled workers to include in the
workforce, and for improving the efficiency of its process. refers to the system and step by step
process in the business. Without a scalable process, it would be difficult to expand the business.
This means that the methods used in the main branch must be documented and must be
replicated as well in other branches.
In analyzing this method, an entrepreneur must do these steps:
1. Identify the operation to analyze.
2. Gather all relevant information about the operation, including tools, materials, and procedures.
3. Talk to employees who use the operation or have used similar operations. They may have
suggestion for improving it.
4. Chart the operation, whether you are analyzing an existing operation or a new operation.
5. Evaluate each step in the existing operation or proposed new operation.
Does the step add value? Does it only add cost?
6. Revise the existing or new operation as needed..
2.) A wise selection of Manpower to join in your workforce provides strategic solutions in
promoting a sustainable competitive advantage that quickly adapts changing demands in
business and its operations.
Manpower these are employees that processes and give insights on how to reduce. cost, increase
productivity to achieve a better business result.
Manpower this is the worker. When setting up a business, finding honest and capable people is
always a challenge. In my experience, people can be honest but may not be capable or competent
and some are capable but not honest. It is a rare find to find someone with all the ideal qualities.
So for a businessman, they must be able to treasure their employees who are both capable and
honest as they are integral to the growth of the business. To look for the right employee for the
business operation, the following are the kind of staff one should have:
1. Skilled
2. Well qualified and well verse in business
3. Responsible
4. Dedicated and committed to work
5. Honest and with integrity
6. Able to attain targets and set goals
7. Not indulge in wasteful expenditure
8. Loyal
9. Team player
How to maximize the staff contribution to work?

 Motivate the staff.

 Make sure they are comfortable in their workplace.

 Staff should be provided with necessary benefits.

 Self-respect is very essential.

 The staff should also share in the profits if possible.

 Appreciation

 Leisure time should be provided for extra-curricular activities.

 One must listen to the woes of the employees.

3.) Machines machinery is also important. Without the proper equipment, you will not be able to
perform the needed tasks efficiently. You may be able to use the manpower to do it but it is
usually more efficient if machines are able to automate the work.
Machine plays a vital part in operating a business. Aside from manpower the use of machinery
is important nowadays to make the process of production more effective and efficient. A
machine is a mechanical structure that uses power to apply forces. and control movement to
perform an intended action. It is controlled by people or a machine itself to produce the
necessary or required number of productions needed. You may be able to use the manpower to
do a particular job but it is usually more efficient if machines are able to automate the work. The
right machine equipment can improve your processes, productivity, and capacity to innovate.
Not only will you save time and resources, but you'll also avoid costly quick fixes.
The following are the right equipment to purchase in starting a business:
1. Assess your business reality. It is important to understand your objectives why you need to
purchase machinery
2. Get an external point of view. Depending on the scale of your investment, it may be worth
working with an external consultant who can ensure you make the most of your purchase by
helping you assess your needs
3. Invest in digital technologies. This technological advantage may monitor a real- time
production and quality control to reduce waste and rework.
4. Create a technology roadmap. A technology roadmap is a planning tool that aligns your
business objectives to long and short-term technology solutions.
5. Shop around for suppliers. You may browse the internet to access different website that offers
specialized machinery equipment.
6. Keep training in mind. All too often, entrepreneurs don't consider the time, money and
resources required to train employees on new equipment
7. Think safety first. A healthy and safe work environment means your employees and your
company can be more productive, and this rule applies to your equipment and technology
purchases as well.
8. Keep it green. When purchasing equipment, be sure that it's energy efficient. Not only to save
money, but also by contributing to the health of the planet.
4. MATERIALS in manufacturing industry, companies are involved in turning raw materials
into physical products, which are then sold to consumers. One of the things that a manufacturing
company can do to achieve efficiency is to source quality raw materials from credible suppliers.
For perishable and edible products, the business should investigate how raw materials are stored,
processed, and shipped to consumers.
Materials sourcing raw materials is critical in any business endeavor as the businessman would
want to have the cheapest possible at the highest quality.
Once the production process is in place, an entrepreneur shifts to the daily activities of materials
management, which encompass the following activities:
A. Purchasing
B. Inventory control
C. Work scheduling
 SELF-CHECK NO. 9.3-1

Multiple Choice
Direction: Carefully read each item. Use separate sheet for your answers. Write. only the letter
of the best answer for each item.
1. Which of the choices refers to critical in any business endeavor as the businessman would
want to have the cheapest possible at the highest quality?
A. Materials. C. Manpower
B. Machine. D. Method
2. Which of the following is a systematic way of doing a particular job?
A. Methods. C. Manpower
B. Machine. D. Materials
3. What do you call the delivering of products and services to customers to meet or surpass the
expectations?
A. Operation Management. C. Delivery expectations
B. Quality expectations. D. Price Expectations.
4. Which of the 4M's of operations are called the worker?
A. Materials. C. Manpower
B. Machine. D. Method
5. What do you call the cost or the amount at which something is valued and also defined as to
put a cost on something, or find out a cost?
A. Price. C. Quality
B. Delivery. D. Method
6. Which is called the transformation process where input is converted into output?
A. Input. C. Output
B. Process. D. Quality
7. Which of the following choices refers to the system and step by step process in the business?
A. Machine. C. Method
B. Manpower. D. Materials
8. Which of the 4m's of operations is controlled by people or a machine itself to produce the
necessary or required number of productions needed?
A. Materials. B. Machine
C. Manpower. D. Method
9. Which is a key responsibility of operations management?
A. Services Required. C. Products Selection
B. Supplier Selection. D. Services
10. Which of the selection below refers to the expectations are captured in the discussions with
the customer and then refined for inclusion in the project product description.?
A. Quality expectations. C. Delivery expectation
B. Price Expectation. D. Product Selection

II. True or False

Direction: On your answer sheet, write T if the statement is true, and F if otherwise.
11. All operations managers must, therefore, begin with the customer's wants and desires in mind
12. Manpower was used in business when developing or innovating a new products or services,
expanding your business enterprise, searching for skilled workers to include in the workforce,
and for improving the efficiency of its process.
13. Manpower is controlled by people or a machine itself to produce the necessary or required
number of productions needed.
14. Material Requirements Planning is the manufacturer arranges for materials to arrive at
production facilities just in time to enter the manufacturing process.
15. The methods used in the main branch must be documented and must be replicated as well in
other branches. If it is difficult to implement at another site, find what needs to be improved.
 ANSWER KEY NO.9.3-1
1.B
2. A
3. C
4. A
5. B
6. B
7. A
8. B
9. B
10. A
Test II
1. F
2. T
3. F
4. F
5. F
 INFORMATION SHEET NO.9.3-2
MARKETING MIX: PLACE AND PROMOTION

Learning objectives: After reading this information sheet, you must be able to:

-describe the Marketing Mix particularly Place and Promotion in relation to the business
opportunity.
-give the importance of Marketing Mix specifically Place and Promotion.

Introduction:
What is the most crucial part in your life in which you need to decide? Maybe in
choosing your course before you enroll in college or the school where to enroll? Just like in
business, one of the most important decisions the business operator has to make is choosing the
right location for his business. The location decision. must be made before actual operations
begin. The wrong location will make it very difficult for the small business operator to achieve
his business objectives.
PLACE/LOCATION
In the marketing mix, the process of moving products from the producer to the intended user is
called place. In other words, it is how your product is bought and where it is bought. This
movement could be through a combination of intermediaries such as distributors, wholesalers
and retailers.
What is the right location?
The right location refers to that one which will bring the highest possible. benefits to the firm.
The wrong location is one which will bring the most disadvantages to the small business.
Although finding a good location proves to be challenging, even more challenging is maximizing
the potentials of that location.
1. Image and location conditions. This refers to the physical look of a location, sanitary
condition safety levels. The reputation of a location is also important.
2. Clustering of competitor establishments. This oftentimes results in drawing bigger market
to the location.
3. Future area development. A certain location might not have the most customers or the best
economics in the short term, but it might become central business hub within the next five years.
Watch out for signs of development like a construction boom or a new shopping mall nearby.
4. Fiscal and regulatory requirements. An entrepreneur would want to set up shop in a town or
city within low tax rates, good governance, excellent infrastructures, and great public services.
Marketing is communicating the value of a product, service or brand to customers, for the
purpose of promoting or selling that product, service or brand.
Benefits of a very Good/Strategic Location
1. Attract lots of customers
Customers prefer to buy their needs in a very strategic location. Gaisano for example is quite
nearer compared to Robinsons so most people living near that place prefer to buy in Gaisano
rather than in Robinson due to proximity or distance, but of course there are other factors that
they considered like the price or convenience.
2. Helps improve sales
Good location helps to remove barriers to sales. Once a customer is physically close to your
store, you have a far better chance of persuading them to purchase from you.
3. Attract new customers
Good location attracts new customers, KCC or SM malls for example, it is located within the
city, and the transportation is very accessible so plenty of new customers are coming every day.
4. Maintain loyal customers
Satisfied and happy customers are maintained if the location is very comfortable and convenient
to stay.
5. Get to know your customers better
While good location are designed to attract new customers, good services, justifiable price
are also a way to maintain and know your existing customers better.
Generally, a bad location decision may result to low sales and production, When the
management or firm is far from its projected target market, it will be difficult to meet the
market's demands.
Not only will this affect the sales but it will also affect the costs and expenses of the management
for it needs more resources in meeting the market's demands.
Thus, the profit may decrease or the firm may have a net loss.
Promotion is an umbrella term, covering all the media by which a business informs customers
about its product including advertising, public relations and sales promotion.

PROMOTION
Promotion refers to communicating information between the company and potential buyers to
influence buying attitudes and behavior. Promotion takes the form of any or all of the following:
1. Advertising this consists of any form of paid, non-personal presentation of ideas, goods, or
services by an identified sponsor.
ELEMENTS OF ADVERTISING
1. Advertising is a form of communication
2. It pays for the use of the communication media. 3. It is non-personal, unlike personal selling.
4. It communicates facts and information, not the actual goods, services, ideas or institutions.
5. It is openly persuasive and convincing in order to sell or secure favorable consideration.
6. It is a marketing function.

TYPES OF ADVERTISING
A. Product and institutional advertising.
Product advertising aimed at informing and stimulating market demand for an advertised product
brand or service.
a. Pioneering advertising attempts primary demand for a type or class of product like milk,
coffee and books.
b. Competitive advertising stimulates selective demand for a specific product like General
Electric or LG Refrigerators.
B. Primary and selective demand advertising
a. Primary advertising to stimulate demand for a product
b. Selective demand advertising is a competitive advertising to persuade the potential customers
through emphasizing particular benefits.
C. Cooperative Advertising
a. Vertical cooperative advertising. This involves companies on different levels of distribution
like manufacturers and retailers.
b. Horizontal cooperative advertising. This involves companies on the same level of distribution
such as group of retailers.
CLASSIFICATION IN ADVERTISING
According to media used
a. Print Media - this are advertisements in newspapers, magazines, and journals. Payment is
based on per column centimeter.
b. Broadcast media these are advertisements in television and radio. Payment is based on time
measured per 30 seconds.
c. Outdoor Advertising - Neon signs, streamers, billboards, Poster panels, aerial signs.
Measured on the basis of space occupied and duration of occupancy.
d. Transit Advertising billboard/neon advertisements on public utility vehicles.
e. Field Advertising uses a vehicle that roams around subdivisions or places announcing a new
product through a loud speaker.
f. Movie Advertising advertisements on theaters. Important consideration for advertising fee is
seating capacity of the movie house an audience class. g. Direct Advertising handouts, leaflets,
catalogues, brochures, advertising a product or service.
Sales Promotion this is a promotion activity that stimulates interest, trial, or purchase by final
customers. Example of sales promotion are the use of coupons, point-of-purchase display
materials, samples, signs, catalogs, novelties, and circulars.
Public Relations refer to the activities of an organization, person or institution directed toward
one or more groups of people, such as employees, consumers, dealers and stockholders, for the
purpose of creating goodwill and an understanding of its policies.
Publicity is the dissemination of news and information about a person, product, service, idea or
institution through mass media in order to create impressions to the public. It uses mass media
without openly paying for them.
Personal Selling this involves direct contact/ communication made by representatives of
business firms to induce the purchase of merchandise or services by oral persuasion.
 SELF-CHECK NO. 9.3-2
Directions: Read the sentences/statements carefully. Choose the letter of the correct answer and
encircle the correct letter of your choice.
1. This refers to the physical look of a location, sanitary conditions, crime and safety levels. The
reputation of a location is also important.
a. exact fit to target customers
b. image and location conditions
c. fiscal and regulatory requirements
d. clustering of competitor establishments.
2. This will answer if the location traffic generally composed of your target customers.
a. exact fit to target customers
b. image and location conditions
c. fiscal and regulatory requirements
d. clustering of competitor establishments.
3. This oftentimes results in drawing bigger market to the location.
a. exact fit to target customers
b. image and location conditions.
c. fiscal and regulatory requirements
d. clustering of competitor establishments.
4. An entrepreneur would want to set up shop in a town or city within low tax rates, good
governance, excellent infrastructures, and great public services.
a. exact fit to target customers.
b. image and location conditions.
c. fiscal and regulatory requirements
d. clustering of competitor establishments.
5. This consists of any form of paid, nonperson presentation of ideas, goods, or services by an
identified sponsor.
a. promotion b. advertising
c. primary advertising. d. indirect advertising
6. Aimed at informing and stimulating market demand for an advertised product brand or
service.
a. primary advertising. b. product advertising
c. indirect advertising. d. secondary advertising
10. This involves companies on different levels of distribution like manufacturers and retailers.
a. direct advertising. b. indirect advertising
c. vertical cooperative advertising. d. horizontal cooperative advertising
7. Political campaign of a candidate for national election is an example of.
a. advertisements by individuals
b. advertisement by governmental units.
c. advertisements by service businesses
d. advertisements by organizations or institutions
8. Colgate Toothpaste with calcium where advertiser is Colgate Palmolive, Philippines, Inc. is an
example of?
a. advertisements by individuals
b. advertisement by manufacturer
c. advertisements by service businesses
d. advertisements by organizations or institutions
9. This are advertisements in newspapers, magazines, journals. Payment is based on per column
centimeter.
a. print media. b. broadcast media
c. movie advertising. d. transit advertising
10. These are advertisements in television and radio. Payment is based on time measured per 30
seconds.
a. print media. b. broadcast media
c. transit advertising. d. price movie advertising
 ANSWER KEY NO.9.3-2
1. B
2. A
3. D
4. C
5. C
6. A
7. B
8. A
9. B
10. D
 INFORMATION SHEET NO. 9.3-3
CUSTOMER PROFILING AND LOCATION ANALYSIS
Learning objectives : After reading this information sheet, you must be able to:
1. To identify the customer profiling
2. To determine the Location Analysis
3. To distinguish the seven P's of Marketing
Introduction
In earlier times, brands would shoot their communication messages out to the world and
hope that if enough people who fall under their target group hear the message, they will respond.
For many companies, this ‘spray and pray’ approach worked brilliantly back then.
But now, with immense growth in technology and competition, customers have become
more aware, they know what they want, how to get it and they will buy from the brand that best
suits their needs. Amongst the clutter, there are high chances your brand may get ignored. Hence,
aimless communication will not work efficiently anymore.

CUSTOMER PROFILING
For entrepreneurs, getting to know the customer very well cannot be overemphasized. Customer
knowledge starts with good customer profiling.
METHODS OF CUSTOMER PROFILING
1. Demographics
2. Psychographics
3. Technographics
IN DEMOGRAPHIC CLASSIFICATION, WE CATEGORIZE CUSTOMERS INTO
THE FOLLOWING:
1. Age
2. Income classes
3. Social classes/Reference groups
4. Ethnic backgrounds.
5. Religious beliefs.
6. Occupations
7. Domiciles
PSYCHOGRAPHICS DEFINES THE CUSTOMER'S:
1. Motivations
2. Perceptions
3. Preferences
4. Lifestyle
TECHNOGRAPHICS CLASSIFIES PEOPLE ACCORDING TO THEIR LEVEL OF
EXPERTISE IN USING A PRODUCT OR A SERVICE. FOR EXAMPLE:
1. Sports beginners might just want basic equipment.
2. Sports regulars may be looking for more sophisticated equipment.
3. Finally, sports professionals would want the best of the best for competitive purposes.
APPLICATION OF CUSTOMER PROFILING
the entrepreneur can use or apply customer profiling in two ways.
1. The first way is to develop a product or service to test out in the marketplace. The customers
most attracted to the product or service can then be profiled. After profiling, the next step is to
find out how huge this market is for exploitation purposes.
2. The second way is to profile the different types of customers in a given industry or area as to
their needs and wants. From these types, the entrepreneur could then choose the customer group
with the best potentials. Products or services can be developed by the entrepreneur to match this
chosen customer group.
MARKET MAPPING
Market mapping refers to grouping customers and products according to certain market
variables.

➤ The purpose of market mapping is to provide the market analyst a better understanding of the
market as a whole and to paint a clearer picture of where the different competitors are relative to
the different market segments.

➤ Market mapping would also allow entrepreneurs to discover market segments that are
relatively unserved or underserved. They could then develop products and services that fulfill the
gaps in the marketplace.

LOCATION ANALYSIS
Location. Location. Location. This is the often-recited mantra of sales people who want to have
the best access to their customers. But finding a good location is one thing. Maximizing the
potentials of such a location is another.
LET THE MARKET KNOW YOU BETTER
In its broadest Sense, marketing is about creating and accumulating customers. Marketing plans
are designed to capture market share and defeat competitors. The marketing function and the
marketing mix serve the overall business strategy. It is summarized in 7 Ps by which the
enterprise will engage competitors and gain customers.
SEVEN P'S OF MARKETING
1. Positioning
2. Product
3. Packaging
4. Place
5. People
6. Promotion
7. Price
POSITIONING
Positioning, in the context of a marketing battle plan, has three overlapping objectives.

 Positioning has an enterprise perspective.

 Positioning has a competitive perspective.
 Positioning takes the customer's perspective.
Enterprises can establish their positioning either by starting with their own product creations or
with their customers' outcome expectations. The competitors will always be part of the
positioning equation, whether the enterprise starts with the product or the customer perspective.
In determining its positioning, the enterprise should be mindful of the main value. proposition
(MVP) to its customers relative to its competitors. In determining the MVP, the enterprise must
assess its products from the customers' viewpoint. It must evaluate the other six Ps of marketing
to find out if they complement and reinforce one another.
PRODUCT

➤A product is the tangible good or the intangible service that the enterprise offers to its
customers in order to satisfy their needs and to produce their expected results.

➤ Products are often identified with their brand names to distinguish them from other products
in the market.
➤ General Types of Products

Breakthrough products -Offer completely new performance benefits

Differentiated products Try to claim a new space in the mind of the customer different from the
spaces occupied by existing product
Niche products -Are products with lower reach, lower visibility, lower prices, and lower top of
mind.
PACKAGING
IMPORTANT PURPOSES OF PACKAGING
Packaging identifies the product, describes its features and benefits, and complies with
government rules on specifying its contents, weight, chemical composition, and potency.
Packaging differentiates the product from its competitors and even from its other brand offerings.
Packaging lengthens the lifespan, physically protects, and extends the usefulness of the product.
PLACE
In finding a good location, one needs to consider the following:

 The number of customers residing or working in the area, and the number of customers
who frequently pass through the area.
 The density or number of customers per unit area.
 The access routes to alternative locations and their traffic count in those routes.
 The buying habits of customers or where they buy, at what time and how frequent.
 Locational features such as parking spaces, foot access, creature comforts, and the like.
The final choice of location must be based on the following:

 Image and location conditions

 Exact fit to target customers
 Clustering of competitor establishments
 Future area development
 Fiscal and regulatory requirements
PEOPLE

➤ People are the ultimate marketing strategy. People sell and push the product. People search
hard to find the right market. People distribute, promote, price, and sell theproducts in the most
attractive market places. People aim to please the customers through continuing service and
product enhancements long after the customers have bought the product. People are the regular
contact points between the enterprise and its market.

➤ The marketing efforts of people are organized at four levels: (1) to create customer
awareness; (2) to arouse customer interest; (3) to educate customers as they evaluate their buying
choices; and (4) to close the sale and deliver the products.
PROMOTION
Promotion is the explicit communication strategy adopted by an enterprise to elicit the
patronage, loyalty, and support not only from its customers but also from its other significant
stakeholders.

➤ Promotion encompasses all the direct communication efforts of the enterprise, such as
advertising, public relation campaigns, promotional tours, product offerings. point-of-sale
displays, websites, flyers, emails, letters, telemarketing, and others.
PRICE

➤ Pricing depends on the business objectives set by the enterprise.

➤ Different Pricing Strategies

 Profit maximization
 Revenue maximization
 Market share maximization
 Attainment of the desired prestige or quality leadership
 Penetration, survival, or liquidation
 Scarcity pricing or market skimming
 Cost recovery
 Subsidy pricing
Other Pricing Strategies Marginal pricing

 Introductory or promotional pricing to launch a new product.

 Charge different prices in different geographical areas to take care of additional logistics
costs in farther locations or to accommodate the lower purchasing power in poorer
geographic areas.
 Discount pricing given to loyal and regular customers to maintain their patronage.
 SELF-CHECK NO. 9.3-3
Test I: True or False
Direction: On your answer sheet, write T if the statement is true, and F if otherwise.
_____1. Promotion encompasses all the direct communication efforts of the enterprise, such as
advertising, public relation campaigns, promotional tours, product offerings.
_____2. Differentiated products try to claim a new space in the mind of the customer different
from the spaces occupied by existing product
_____3. marketing is about displaying and not accumulating customers.
_____4. product is the tangible good or the intangible service that the enterprise offers to its
customers in order to satisfy their needs and to produce their expected results.
_____5. Market mapping would also allow entrepreneurs to discover market segments that are
relatively unserved or underserved.
Test II: Enumeration
1. What are the seven P's of Marketing
2. What are the Psychographics of customers
3. Methods of Customer Profiling
4. Different pricing strategies
 ANSWER KEY NO. 9.3-3
Test I
1. T
2. T
3. F
4. T
5. T