Entrep Midterm

Two Types of Proposition

Value Proposition (VP)
Unique Selling Proposition (USP)

Value Proposition (VP)

Refers to the unique benefits or value
that a product or services provides to its
customers.

1. Target Customer
2. Needs/opportunity
3. Name of the product
4. Name of the enterprise/company

In creating Value Proposition, entrepreneurs will
consider the 4 basic elements:

[TARGET CUSTOMERS]
[CUSTOMER NEEDS]
[OUR FEATURES AND BENEFITS].

We help (x) do (y) by doing (z)

Unique Selling Proposition (USP)

Is a statement that explains what makes a
business or product stand out from its
competitors. It's also known as a "selling
point"

1. Identify and rank the uniqueness of the
product or services character
2. Be very Specific
3. Keep it Short and Simple (KISS)

Effective unique selling proposition to the target
customers are:

A Target Market

is a group of people that have been identified as the most likely potential customers for a product because of their shared characteristics, such as age, income, and lifestyle.

1. Geographic Segmentation

2. Demographic Segmentation

3. Psychological Segmentation

4. Behavioral Segmentation

4 Methods for Segmenting the Market

Geographic Segmentation

the total market is divided according to geographical location.

a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)

Variables to consider in Geographic segmentation

Demographic Segmentation

divided based on consumers

a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size

Variables to consider in Demographic Segmentation

Psychological Segmentation

divided in terms of how customers
think and believe

a. Needs and wants
b. Attitudes
c. Social class
d. Personality traits
e. Knowledge and awareness
f. Brand concept
g. Lifestyle

Variables to consider in Psychological Segmentation

Behavioral Segmentation

divided according to customers behavior pattern as they interact with a company.

a. Perceptions
b. Knowledge
c. Reaction
d. Benefits
e. Loyalty
f. Responses

Variables to consider in Behavioral Segmentation

Customer Requirements

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

1. Service Requirement
2. Output Requirement

Two Types of Customer Requirement

Service Requirement

An intangible thing or product that
cannot be touched but the
customer can feel the fulfillment.

Output Requirements

Tangible thing or things that can be seen.
Characteristic specifications that a consumer
expects to be fulfilled in the product.

Market Size

It is the approximate number of
sellers and buyers in a particular
market.

Marketing Mix

is a set of controllable and connected variables that a company gathers to satisfy a customer better than its competitor.

• It is also known as the “P’s” in Marketing.

product
place
price
promotion

Original 4 P’s

people
packaging
positioning

Three elements that were added

1.* Product
2.* Place
3.* Price
4.* Promotion
5.* People
6.* Packaging
7.* Positioning

7 P’s of Marketing

Product

Refers to any goods or services that is
produced to meet the consumers’ wants,
tastes and preferences.

Goods

can be categorized into business or
consumer goods.

Services

can be categorized into consumer
and professional services.

Price

The amount or value that a
customer gives up to enjoy the
benefits of having or using a product
or service.

Penetration Pricing

A set artificially low in order to gain market share.

Skimming Pricing

A company charges a higher price then slowly lowers the price to make the product available.

Competition Pricing

A seller uses prices of competing products
as a benchmark instead of considering own
costs

Bundle Pricing

The act of placing several products or
services together in a single package
and selling for a lower price than
would be charged.

Psychological Pricing

A seller uses prices of competing
products as a benchmark instead of
considering own costs.

Promotion

Refers to the complete set of
activities, which communicate
the product, brand or service to
the user.

1.Advertising
2. Public Relation
3. Personal Selling
4. Sales Promotion
5. Direct Marketing

The following are the most common medium in promoting a product and this is called promotional mix

Place

represents the location where the buyer and seller exchange goods or services.

Producer

Someone who create and supplies goods or services. 

Wholesaler

A company that sources, buys or stores products and services  from Multiple suppliers and sells them to other businesses

Retailer

A business that finds, buys and gathers products or services from  multiple suppliers and sells them to consumers

Consumer

Individuals or businesses that consume or use goods and services

People

This consist of each person
who is involved in the
product or service whether
directly or indirectly

Packaging

is a silent hero in the marketing world. _______ refers to the outside appearance of a product and how it is presented to the customers

1. Protection
2. Containment
3. Information
4. Utility of use
5. Promotion

COMPONENTS OF DISTRIBUTION
CHANNEL

Positioning

refers to a process used by
marketers to create an
image in the minds of a
target market