M3-ENTREP.pptx PDF

RECOGNIZ and E UNDERSTA THE ND MARKET MODULE 3  What is Unique Selling Proposition (USP) and Value Proposition (VP)? This part allows the entrepreneur to prepare himself on how to advertise and sell his product even if it is similar to others.  VALUE PROPOSITION (...

RECOGNIZ and E UNDERSTA THE ND MARKET MODULE 3  What is Unique Selling Proposition (USP) and Value Proposition (VP)? This part allows the entrepreneur to prepare himself on how to advertise and sell his product even if it is similar to others.  VALUE PROPOSITION (VP) Is a business or marketing statement that summarizes why a consumer should buy a company's product or use its service. This statement is often used to convince a customer to purchase a particular product or service to add a form of value to their lives. In creating Value Proposition, entrepreneurs will consider the basic elements: Target Customer Needs/opportunity Name of the product Name of the enterprise/company EXAMPLE: Masarap kahit walang sauce EXAMPLE: Just do it EXAMPLE: So clean... So good  UNIQUE SELLING PROPOSITION Refers to how you sell your product or services to your customer. You will (USP) address the wants and desires of your customers. As an entrepreneur, you should think of marketing concepts that persuade your target customers. You may ask the following questions in doing this: What do the customers want? What brand does well? What does your competitor sell well? Some tips for the entrepreneur on how to create an effective unique selling proposition to the target customers are: Identify and rank the uniqueness of the product or services character Be very Specific Keep it Short and Simple (KISS) Readers get confused between value proposition and unique selling proposition. The two propositions are used to differentiate the products from competitors. For example, Jollibee is known to have a Filipino taste burger. This brand has a unique selling point because of its tagline “Langhap Sarap” Unique Selling Proposition and Value Proposition are two of the most famous tools used to explain why prospect customers buy each product and service. Base on each definition, we learn that USP and VP are frameworks of each business industry.  TARGET MARKET Market Targeting is a sage in market identification process that aims to determine the buyers with common needs and characteristics. In targeting a specific market, it will exclude people if it will not fit your criteria. Rather, target marketing allows you to focus your marketing money and brand message on a specific market that is more likely to buy from you than other markets. Commonly used methods for segmenting the markets are follows: 1. Geographic segmentation – the total market is divided according to geographical location. Variables to consider Climate Dominant ethnic group Culture Density (either rural or urban) 2. Demographic Segmentation – divided based on consumers Variables to consider Gender Age Income Occupation Education Religion Ethnic group Family size 3. Psychological Segmentation – divided in terms of how customers think and believe Variables to consider Needs and wants Attitudes Social class Personality traits Knowledge and awareness Brand concept Lifestyle 4. Behavioral Segmentation – divided according to customers’ behavior pattern as they interact with a company. Variables to consider Perceptions Knowledge Reaction Benefits Loyalty Responses  CUSTOMER REQUIREMENTS Customer requirements are the specific characteristics that the customers need from a product or a service. There can be two types of customer requirements: 1.Service Requirement 2.Output Requirement Service Requirement: An intangible thing or product that cannot be touched but the customer can feel the fulfillment. There are elements in service requirement like on-time delivery, service with a smile, easy-payment etc. Output Requirements: Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the product.  MARKET SIZE The entrepreneur’s most critical task is to calculate the market size, and the potential value that market has for their start-up business. Market research will determine the entrepreneurs’ possible customers in one locality. THANK YOU