ENTREPRENEURSHIP
MODULE 3: LESSON 1
Recognize and Understand the
Market
Prepared by: Norhayna A. Mayo
is divided into two
This module
topics
p ro po sit io n a nd va lu e
r ib e th e u niq u e sell in g
1. Desc d uc t/s er vic e
if fe re n t ia te o n e 's p r o
propo si tio n th at d
n g p r od uc ts/ se rv ic es
from exis t i
o m e rs are in terms o f:
mine wh o the cu s t
2. Deter
a. Tar g e t M a rk e t
u st o me r re q u ire m e nt
b. C
c. M a rk e t si z e
VALUE PROPOSITION (VP)
-is a business or marketing statement that
summarizes why a consumer should buy a
company's product or use its service.
-is often used to convince a customer to
purchase a particular product or service to add a
form of value to their lives.
BASIC ELEMENTS IN VP
Target Customer
Needs/Opportunity
Name of the Product
Name of the enterprise/company
EXAMPLE: Potential value proposition
in small businesses of your locality
Aling Charing Sari-sari Store open only from 6:00 am to
6:00 pm, but Aling Charing noticed that there are customers
who go nearby town to look for a convenience store at
around 10:00 pm to 6:00 am. She believes that this is a great
opportunity for her store to operate 24/7. In this example,
proposed value proposition:
“Charing Sari-sari Store, opens 24/7”
UNIQUE SELLING PROPOSITION (USP)
-refers to how you sell your product or
services to your customer.
-You will address the wants and desires
of your customers
-As entrepreneur, you think of
marketing concept that persuade your
target customers.
What the customers want?
What brand does well?
What your competitor does well?
Identify and rank
the uniqueness of Very Specific Keep it short and
the product or simple (KISS)
services character
TIPS TO CREATE AN EFFECTIVE USP TO THE TARGET CUSTOMERS
VP vs. USP
This 2 propositions are used to
differentiate the products from
competitors.
Ex: Jollibee is known to have a
Filipino taste burger. This brand has
a unique selling point because of its
tagline "Langhap Sarap"
A. TARGET MARKET
MARKET TARGETING is a sage in market identification
process that aims to determine the buyers with common
needs and characteristics.
Prospect customers are market segment that
entrepreneurial venture intends to serve.
-it allows you to focus your marketing money and brand
message on a specific market that is more likely to buy
from you than other [Link] is more affordable,
efficient, and effective way to reach potential clients and
generate business.
COMMONLY USED METHODS FOR
SEGMENTING THE MARKET
1. Geographic segmentation – the total market is divided
according to geographical location.
Variables to consider:
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)
COMMONLY USED METHODS FOR
SEGMENTING THE MARKET
2. Demographic Segmentation – divided based consumers.
Variables to consider:
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size
COMMONLY USED METHODS FOR
SEGMENTING THE MARKET
3. Psychological Segmentation- divided in terms for customers
think and believe.
Variables to consider:
a. Needs and wants
b. Attitudes
c. Social class
d. Personality traits
e. Knowledge and awareness
f. Brand concept
g. Lifestyle
COMMONLY USED METHODS FOR
SEGMENTING THE MARKET
4. Behavioral Segmentation- divided according to customers
behavior pattern as they interact with a company.
Variables to consider:
a. Perceptions
b. Knowledge
c. Reaction
d. Benefits
e. Loyalty
f. Responses
B. CUSTOMER REQUIREMENTS
Customer requirements are the specific
characteristics that the customers need from a
product or a [Link] can be two types of
customer requirements:
1. Service Requirement
2. Output Requirement
Service Requirement
Intangible thing or product that is not able to be
touched but customer can feel the fulfillment.
There are elements in service requirement like on-
time delivery, service with a smile, easy-payment
etc. It includes all aspects of how a customer
expect to be treated while purchasing a product
and how easy the buying process goes.
Output Requirements
Tangible thing or things that can be seen.
Characteristic specifications that a consumer expects to
be fulfilled in the product. Costumer that will avail
services as a product, then various service requirements
can take the form of output requirements. For example, if
the consumer hires a multi cab, then on-time arrival
becomes an output requirement. Customer buys gadgets
(phone speaker), the specification like the loudness and
clarity are the output requirements.
C. MARKET SIZE
Market size is like a size of arena where the
entrepreneurs will play their business. It is the
approximate number of sellers and buyers in a particular
market. Companies are interested in knowing the market
size before launching a new product or service in the
area. In determining the market size, entrepreneur will
conduct a strategic marketing research from reliable
sources using the following method.
C. MARKET SIZE
First step is to estimate the potential market –
approximate number of customers that will buy the
product or avail your services. Second step is to
estimate the customers who probably dislike to buy your
product or avail the services. Third step is for the
entrepreneur to estimate the market share, that means
plotting and calculating of the competitor’s market share
to determine the portion of the new venture. Market size
become the most important if you ever need to raise
funding for your business.
