Blue-and-Yellow-Illustrative-Filipino-Entrepreneurship-Presentation_20240816_210340_0000.pdf

ENTREPRENEURSHIP RECOGNIZE AND UNDERSTAND THE MARKET OBJECTIVES This module has two objectives: 1. Describe the unique selling proposition and value proposition that differentiate one’s product/service from existing products/services. 2. Determine who the...

ENTREPRENEURSHIP RECOGNIZE AND UNDERSTAND THE MARKET OBJECTIVES This module has two objectives: 1. Describe the unique selling proposition and value proposition that differentiate one’s product/service from existing products/services. 2. Determine who the customers are in terms of: a. Target market b. Customer requirement c. Market size What is Unique Selling Proposition (USP) and Value Proposition? 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 There are many competitors in the market who establish superiority over other entrepreneurs. Entrepreneurs should think of other alternatives to make their products better. An important aspect in Value Proposition is that it must be truthful and that it should establish credibility to the consumers. Example: Potential value proposition is most common in small businesses of your locality. Aling Charing Sari-Sari Store opens only from 6:00 am to 6:00 pm, but Aling Charing noticed that there are customers who go to a 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.  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 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) As an entrepreneur, present the best feature of your product or service that is different from other competitors. Identifying the unique selling proposition requires marketing research that you will learn from the other modules. In promoting your products or services, make sure that it is very specific and put details that emphasize the differentiator against the competitors.  After you understand the value proposition and the unique selling proposition, now it’s time to understand the target market, customers requirementand market size. As you might expect, the market is right at the center of our word cloud for this lesson. Understanding your market is critical in building your business model. There are three factors that will determine your customers. 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 a market segment that an entrepreneurial venture intends to serve. 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. Choose a product that is more affordable, efficient, and effective to reach potential clients and generate business.  Commonly used methods for segmenting the markets are follows.: 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) 2. Demographic Segmentation – divided based on consumers  Variables to consider a. Gender b. Age c. Income d. Occupation e. Education f. Religion g. Ethnic group h. Family size 3. Psychological Segmentation – divided in terms of how 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 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 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. It includes all aspects of how a customer expects 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. Costumers 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 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. What is Market Size?  Market size is like a size of the 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, the entrepreneur will conduct a strategic marketing research from reliable sources using the following method. The first step is to estimate the potential market – approximate number of customers that will buy the product or avail your services. The second step is to estimate the customers who probably dislike to buy your product or avail the services. The 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 becomes the most important factor if you ever need to raise funding for your business. Thank you