The document discusses key concepts for entrepreneurs to understand the market for their product or service, including developing a value proposition, unique selling proposition, identifying the target market and customer requirements, and determining market size. It provides definitions and examples for each concept, as well tips on segmentation methods, calculating market potential, and understanding customer needs to effectively position one's offering.
The document discusses key concepts for entrepreneurs to understand the market for their product or service, including developing a value proposition, unique selling proposition, identifying the target market and customer requirements, and determining market size. It provides definitions and examples for each concept, as well tips on segmentation methods, calculating market potential, and understanding customer needs to effectively position one's offering.
The document discusses key concepts for entrepreneurs to understand the market for their product or service, including developing a value proposition, unique selling proposition, identifying the target market and customer requirements, and determining market size. It provides definitions and examples for each concept, as well tips on segmentation methods, calculating market potential, and understanding customer needs to effectively position one's offering.
The document discusses key concepts for entrepreneurs to understand the market for their product or service, including developing a value proposition, unique selling proposition, identifying the target market and customer requirements, and determining market size. It provides definitions and examples for each concept, as well tips on segmentation methods, calculating market potential, and understanding customer needs to effectively position one's offering.
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Recognize and
Understand the Market
Objective: 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 VALUE PROPOSITION ◦ 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. In creating Value Proposition, entrepreneurs will consider the basic elements
◦Target Customer ◦ Needs/opportunity ◦ Name of the product ◦ Name of the enterprise/company Example: Potential value proposition is most common 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 ◦refers to how you sell your product or services to your customer. You will address the wants and desires of your customers. Some tips for the entrepreneur on how to create an effective unique selling proposition to the target customers: Identify and rank the uniqueness of the product or services character Very Specific Keep it short and simple (KISS) “Charing Sari-sari Store, opens 24/7”. ◦In promoting your products or services, make sure that it is very specific and put details that emphasize the differentiator against the competitors. ◦Keep it short and simple and think of a tagline that is easy to remember. Lesson 2: 2 – Determine who the customers are in terms of: ◦a. Target market ◦b. Customer requirement ◦c. Market size A. Target Market ◦is a sage in market identification process that aims to determine the buyers with common needs and characteristics. Commonly used methods for segmenting the market : ◦Geographic segmentation ◦Demographic Segmentation ◦Psychological Segmentation ◦Behavioral Segmentation C. Market Size ◦Entrepreneur’s most critical task is to calculate the market size, and the potential value that market has for their startup business. Market Research will determine entrepreneur possible customers in one locality. What is 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. ◦In determining the market size, entrepreneur will conduct a strategic marketing research from reliable sources using the following method. ◦1st Step-is to estimate the potential market – approximate number of customers that will buy the product or avail your services. ◦2nd Step-is to estimate the customers who probably dislike to buy your product or avail the services. 3rd 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. Entrepreneurs will take a look at each customer’s demand in the market. Understanding your market will help reach your goal to compete with bigger competitors. Building positive relationships with customers required more understanding in customers purchasing motivations and habits. Value Proposition and Unique Selling Proposition basically joint hand in hand to promote its product and services. Target Market is a sage in market identification process that aims to determine the buyer common need and behavior. There are four (4) methods for segmentation, Geographic, Demographic, Psychological, and Behavioral. There are two types of customer requirement the Output requirement and Service Requirement, the tangible and intangible things. Understanding your market will help reach your goal to compete with bigger competitors. RECAP: Value proposition
Unique Selling Proposition
Customer Target Market Market Size Requirement • Geographic • Service • Market Research • Demographic • Output • Strategies in • Psychological marketing • Behaviroal research
