Entrepreneurship

Recognized and Understand the Market

Value Proposition- is a business or marketing statement that summarizes why a consumer

should buy a company's product or use its service.

-is what the customer gets for what the customers pay.

In creating Value Proposition, entrepreneurs will consider the basic elements:

➢ Target Customer

➢ Needs/opportunity

➢ Name of the product

➢ Name of the enterprise/company

Unique Selling Proposition (USP) – refers to how you sell your product or services to your
customer.

➢ Identify and rank the uniqueness of the product or services character

➢ Be Very Specific

➢ Keep it Short and Simple (KISS)

Value Proposition Unique Selling Proposition

Are longer statements than USP because they Composed of 3 to 5 words
express tangible results or concrete
- They serve to convince your target market that - Separates you from the competition set up
they’ll the “value of their money” “buying criteria” Being Unique

The company has an only 1 VP - The company can have many USPs as many as
company products/services offered

Factors That Will Determine Your Customers

a. Target Market

b. Customers Requirements

c. Market Size

Target Market- refers to a group of customers to whom a company wants to sell its products
and services, and to whom it directs its marketing efforts.
 Market Targeting is a stage in the market identification process that aims to determine the
buyers with common needs and characteristics.

Market Segmentation- It is a method of dividing a market into smaller groupings of consumers

or organizations on which segment has a common characteristic such as needs and behavior.

Methods for Market Segmentation

1. Geographic segmentation -based on where they live

Variables to consider

• Climate

• Dominant ethnic group

• Culture

• Density (either rural or urban)

2. Demographic Segmentation- Based on who would be your customers

Variables to consider

• Gender • Education

• Income • Ethnic group

• Age • Religion

• Occupation • Family size

3. Psychological Segmentation – divided in terms of “how” customers think and believe

Variables to consider

Needs and wants Knowledge and awareness

Attitudes Brand concept

Social class Lifestyle

Personality traits

• 4. Behavioral Segmentation- divided according to customers’ behavior patterns as they interact

with a company.
Variables to consider

• Perceptions • Benefits

• Knowledge • Loyalty

• Reaction/ Responses
 B. Customers Requirements- are the specific characteristics that the customers need from a
product or a service.

2 types of Customers Requirements

1. Service Requirement

2. Output Requirement

Market Research or Marketing Research Process- can be defined as the process of gathering,
analyzing and interpreting the information about the products or the services to be offered for
sale to the potential consumers in the market

DATA COLLECTION is the most valuable tool in any type of research study. Inaccurate data
collection may cause mistakes and ultimately lead to invalid results.

TIPS in COLLECTING DATA

• Organize collected data as soon as it is available

• Know what message you want to get across and then collect data that is relevant to the
message

• Collect more data

• Create more data

• Take note of interesting or significant data

Three different data collection techniques

1. Survey- are the most common way to gather primary research with the use of
questionnaires or interview schedules. These can be done via direct mail, over the phone,
internet (e.g. Google) or email, face-to-face, or on the Web (e.g. Skype or Viber).

Guideline in Making Questions for Survey

• Organize collected data as soon as it is available
• Know what message you want to get across and then collect data that is relevant to the
message
• Collect more data
• Create more data
• Take note of interesting or significant data
• Make sure the response scales used are consistent with categories that are mutually
exclusive.
2. INTERVIEW is one of the most reliable and credible ways of getting relevant
information from target customers. It is typically done in person between the
researcher/entrepreneur and a respondent where the researcher asks pertinent questions
that will give significant pieces of information about the problem that he will solve. The
interview is also helpful even when the business has already started because the
 customers’ feedback provides the entrepreneur a glimpse of what the customers think
about the business. Interviews normally last from 15 to 40 minutes, but they can last
longer, depending on the participants’ interest in the topic

Two types of interview

Personal interviews are the traditional method of conducting an interview. It allows the researcher to
establish relationships with potential participants and therefore gain their cooperation. It generates the
highest response rates in survey research. They also allow the researcher to clarify indefinite answers
and when necessary, seek follow-up information.

Telephone interviews are less expensive and less time-consuming, but the disadvantages are that the
response rate is not as high as the face-to-face interview, but considerably higher than the mailed
questionnaire.

3. FOCUS GROUP DISCUSSION (FGD) – this is an excellent method for generating and screening
ideas and concepts. It can be moderated by group interviews and brainstorming sessions that provide
information on users’ needs and behaviors.

The following are considerations in the use of focus group discussions in market research:

• The length of the session is between 90 and 120 minutes

• Conduct focus groups discussion with 8 to 10 participants per group.

• Assign an expert moderator/facilitator who can manage group dynamics.

• Use a semi-structured or open-format discussion

• Strive for consistency in the group’s composition (for example, it may not be advisable to have
business customers and retail customers in the same focus group, their needs are very different)

Type of Exam
Identification
Multiple choice
Modified TRUE or FALSE
Enumeration