What are the sources
of opportunities?
What I Know
Before we begin with this module, answer the questions below. Let’s
see if you already have some ideas about Recognizing Potential Markets. Write True if the
statement is correct and write False if not.
___1. Value refers to what the product does for customers that they’re prepared to pay.
__ 2. The Marketing Concept that was first proposed as a theory to understand the pattern in
successful advertising was called Unique Selling Proposition.
___3. In creating value proposition, entrepreneurs will consider the four (4) basic elements.
___4. Unique selling proposition is specific, often citing numbers or percentages.
___5. Effective selling using advertising and marketing is part of value proposition.
___6. Identifying and rank the uniqueness of the product or services is one tip for the
entrepreneur on how to create an effective unique selling proposition.
___7. The entrepreneurs should not consider the health benefits of the consumers.
___8. Consumers have common wants and needs.
___9. Market targeting is a stage in market identification process that aims to determine the
set of buyers with common needs and characteristics.
___10. Identifying the unique selling proposition will not require marketing research
Recognize and Understand the Market
Objectives
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
Activity 1.
Identify whether the following is a Unique Selling
Proposition or Value Proposition of a product/service.
Example: Langhap Sarap Example: Unique Selling
Proposition
1. Safeguard - ____________________________
2. Love ko to - ____________________________
3. Supermarket - ____________________________
4. Surf - ____________________________
5. Bukas kahit anong oras - ____________________
What is Unique Selling Proposition
(USP) and Value Proposition (VP)?
This part allows the
entrepreneur to prepare
himself on how to advertise
and sell his product even if it is
similar to others.
What is Value Proposition (VP) ?
is a business or marketing statement that
summarizes why a consumer should buy
a company's product or use its service.
This statement is often used to convince
a customer to purchase a particular
product or service to add a form of value
to their lives.
What are the elements to be considered by the
Entrepreneurs in creating the VALUE
PROPOSITION?
Target Customer
Needs/opportunity
Name of the product
Name of the enterprise/company
There are many competitors in the market
who establish superiority over other
entrepreneurs. Entrepreneurs should think
of other alternatives to make their products
better. An important aspect in Value
Proposition is that it must be truthful and
that it should establish credibility to the
consumers.
Example:
Potential value proposition is most common
in small businesses of your locality.
“Aling Charing Sari-Sari Store opens only from
6:00 am to 6:00 pm, but Aling Charing noticed
that there are customers who go to a 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, the proposed value proposition is:
“Charing sari-sari Store, open 24/7”.
The business describes a sari-
sari store – a basic retail
store. The assurance from this
value proposition is because
of the phrase “open 24/7”,
Aling Charing’s sari-sari store
opens 24/7, which makes it
different from other
competitors.
What is “Unique Selling Proposition (USP)”
refers to how you sell
your product or services
to your customer. You will
address the wants and
desires of your
customers.
As entrepreneur, you may ask the
following questions in doing this:
1. What do the customers want?
2. What brand does well?
3. What does your competitor sell
well?
Some tips for the entrepreneur on how to
create an effective unique selling
proposition to the target customers are:
Identify and rank the uniqueness of the
product or services character
Be very Specific
Keep it Short and Simple (KISS)
As an entrepreneur,
present the best feature of your product or service that is
different from other competitors.
Identifying the unique selling proposition requires
marketing research that you will learn from the other
modules.
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.
The proposed unique selling
proposition is:
“Charing sari-sari store, open 24/7”
The two propositions are used to
differentiate the products from
competitors.
For example, Jollibee is known
to have a Filipino taste burger. This
brand has a unique selling point
because of its tagline “Langhap
Sarap”
Unique Selling Proposition and Value
Proposition are two of the most famous
tools used to explain why prospect
customers buy each product and service.
Base on each definition, we learn that USP
and VP are frameworks of each business
industry.
The two propositions are
valuable for the entrepreneurs.
Target Market
Market Targeting is a sage in 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.
It will exclude people if it will not fit your
criteria
allows you to focus your marketing money and
brand message on a specific market that is more
likely to buy from you than other markets.
Choose a product that is more affordable,
efficient, and effective to reach potential clients
and generate business
Commonly used methods for segmenting the
markets are follows.:
1. Geographic segmentation – the total market is
divided according to geographical location.
Variables to consider
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban
2. Demographic Segmentation – divided based on
consumers
Variables to consider
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size
Psychological Segmentation
is divided in terms of how customers think and
believe
Variables to consider
a. Needs and wants g. Lifestyle
b. Attitudes
c. Social class
d. Personality traits
e. Knowledge and awareness
f. Brand concept
Behavioral Segmentation
divided according to customers’ behavior pattern
as they interact with a company.
Variables to consider
a. Perceptions
b. Knowledge
c. Reaction
d. Benefits
e. Loyalty
f. Responses
Customer Requirements
are the specific characteristics that the
customers need from a product or a service.
There can be two types of customer
requirements:
1. Service Requirement
2. Output Requirement
Service Requirement
An intangible thing or product that cannot 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.
It includes all aspects of how a customer
expects to be treated while purchasing a
product and how easy the buying process
goes.
Output Requirements
Tangible thing or things that can be seen.
Characteristic specifications that a consumer expects
to be fulfilled in the product.
Costumers will avail services as a product, then
various service requirements can take the form of
output requirements.
For example
if the consumer hires a multi cab, then
on-time arrival becomes an output
requirement.
Customer buys gadgets (phone speaker)
the specification like the loudness and
clarity are the output requirements.
Market Size
The entrepreneur’s most critical task
is to calculate the market size, and the
potential value that market has for
their start-up business.
Market research will determine the
entrepreneurs’ possible customers in
one locality.
What is Market Size?
is like a size of the arena where the
entrepreneurs will play their business.
is the approximate number
of sellers and buyers in a
particular market.
How is market size be determined?
Entrepreneur will conduct a strategic marketing research
from reliable sources using the following method.
1.to estimate the potential market – approximate number of
customers that will buy the product or avail your services.
2.to estimate the customers who probably dislike to buy your
product or avail the services.
3.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.
GROUP ACTIVITY
Additional Activities
Give at least 5 products being advertised or promoted on television. Evaluate each one
according to its USP, VP and method of segmentation used, customer requirements,
and who are the customers.
Product Name Method of Segmentation Customer Requirements Target customers
USP VP
Ex. Jollibee Langhap Sarap Filipino taste burger Service & Output
Psychological All people
1.
2.
3.
4.
5.
HOME DELIGHT
As an entrepreneur, you are planning to have a
business. Using the following guide questions,
answer them so you can now start drafting your
business plan.
1. What product do you want to sell?
2. How will you apply the concept of value
proposition and unique selling proposition?
3. What is the best tagline of your chosen product?
4. Who is your target market?
