ENTREPRENEURSHIP-GROUP-1

UNIQUE SELLING PROPOSITION (USP)

Definition

  • A method to market your product or service distinctively compared to competitors.

  • Clearly differentiates your offerings, positioning you as the logical choice.

Components of USP

  • Unique Factor: Setting yourself apart from competitors, emphasizing a clear point of difference that addresses consumer needs.

  • Selling Motivation: Encourages potential customers to exchange money for your product or service.

  • Proposal Aspect: The offer made to persuade customers to accept or buy.

Winning, Losing, and Risky Zones

  • Winning Zone: Your brand effectively meets consumer needs and expectations.

  • Losing Zone: Competitors satisfy consumer needs better, leading to potential market loss.

  • Risky Zone: Competition focuses on areas that consumers deem unimportant, wasting effort.

Examples of USP

  1. Package Shipping Industry: "When it absolutely, positively has to be there overnight."

  2. Food Industry: "Pizza delivered in 30 minutes or it's free."

  3. Real Estate Industry: "Our 20 Step Marketing System Will Sell Your House In Less Than 45 Days At Full Market Value."

STEPS TO CONSTRUCT YOUR UNIQUE SELLING PROPOSITION

Step 1: Identify Key Benefits

  • Describe the three biggest benefits of your product or service.

Step 2: Establish Uniqueness

  • Ensure your USP distinctly separates you from competitors.

Step 3: Address Industry Pain Points

  • Identify unmet needs within your industry or market.

Step 4: Be Specific and Provide Proof

  • Address consumer skepticism by delivering factual evidence.

Step 5: Craft a Concise Sentence

  • Create a powerful, unchangeable USP statement.

Step 6: Integrate USP in Marketing

  • Use variations of your USP across all marketing materials.

Step 7: Deliver on Your Promise

  • Ensure the ability to fulfill the promises outlined in your USP.

VALUE PROPOSITION

Definition

  • A statement analyzing the combination of goods and services provided to customers in exchange for payment.

5-Step Process to Develop Your Value Proposition

Step 1: Understand Your Customer

  • Identify who they are, their needs, problems, improvements desired, and values.

Step 2: Know Your Offering

  • Determine how your product solves problems or provides value and results for customers.

Step 3: Analyze Competitors

  • Understand how your offering creates more value than that of competitors.

Step 4: Develop a Customer-Oriented Proposition

  • Formulate why customers should purchase your product or idea specifically.

Step 5: Synthesize Into a Value Statement

  • Create a definitive value proposition statement from insights gathered.

Example of Best Value Proposition

  • "One tap and a car comes directly to you. Your driver knows exactly where to go. Payment is completely cashless."

DETERMINING THE MARKET SIZE

Steps to Determine Market Size

Step 1: Estimate Potential Market

  • Approximate the number of customers likely to purchase your product/service.

Step 2: Precision Targeting

  • Eliminate unlikely customers from your estimates.

Step 3: Estimate Market Share

  • Assess competitors' market share, to identify available segments for newcomers.

Market Size Example

  • Example of Mr. Aron Gonio establishing a rice retailing business.

  • Data shows market potential and profits based on local consumption and competition.

VALIDATING CUSTOMER-RELATED CONCERNS

Methods

  1. Interviews: One-on-one conversations with knowledgeable professionals for in-depth responses.

  2. Focus Group Discussions (FGD): Interactive settings for group feedback on perceptions and attitudes toward products or services.

  3. Surveys: Written/online questionnaires to gather spending behaviors and purchasing power.

Types of Surveys

  • Telephone Interviews: Quick method to gather information, requiring prepared scripts.

  • Direct-Mail Interviews: Simple questionnaires or elaborate formats, ensuring brevity for easier responses.

IDENTIFYING & VALIDATING MARKET PROBLEMS

Key Actions

  1. Ask the Right Questions: Prepare beforehand to improve outcomes.

  2. List Target Market Problems: Identify the most significant problems affecting your target market.

  3. Interview Decision Makers: Engage with key influencers to enhance responses and data collection.

  4. Build a Database: Track trends and validate issues based on gathered insights.

  5. Analyze Stated Problems: Ensure issues identified are genuine and relevant to the market.