Lesson 3 Recognize 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.

Target customer, Needs/opportunity, Name of the product and enterprise/company

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

value proposition

is a business or marketing statement that summarizes why a consumer should buy a company's product or use its service.

Target customer, Needs/opportunity, Name of the product and enterprise/company

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

unique selling proposition

Refers to how to sell your product or services to your customer. You will address the wants and desires of your customers.

unique selling point

For example, Jollibee is known to have a Filipino taste burger. This brand has a _______ because of its tagline "Langhap Sarap".

market targeting

is a sage in the 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.

geographic segmentation

the total market is divided according to geographical location.

Climate, Dominant ethnic group, Culture, Density

geographic segmentation valuables to consider

demographic segmentation

divided based on consumers

psychological segmentation

divided in terms of how customers think and believe

behavioral segmentation

divided according to customer's behavior pattern as they interact with a company.

customer requirement

are the specific characteristics that the customers need from a product or service.

service requirement

An intangible thing or product that can 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.

service requirement

It includes all aspects to be treated while purchasing a product and how easy the buying process goes.

output requirement

Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to e fulfilled in the product. Customers will avail services as a product, then various service requirements can take the form of output requirements.

output requirement

For example, if the customer hires a multi cab, then on-time arrival becomes an output requirement. Customer buy gadgets (phone speaker) the specification like the loudness and clarity are the output requirements.

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.

first step market size

estimate the potential market approximate number of customers that will buy the product or avail your services

second step market size

estimate the customers who probably dislike to buy your product or avail the services

third step market size

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.