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. 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.
• An important aspect in Value Proposition is that it must be truthful and that it should establish credibility to the customers
• unique selling proposition refers to how you sell your product or services to your customer. You will address the wants and desires of your customers.
• Market Targeting is a sage in market identification process that aims to determine the buyers with common needs and characteristics.
• Geographic segmentation  –  the total market is divided according to geographical location.
• Demographic Segmentation – divided based consumers.
• Psychological Segmentation - divided in terms for customers think and believe.
• Behavioral Segmentation- divided according to customers behavior pattern as they interact with a company.
• service requirement - Intangible thing or product that is not able to be touched but 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 expect 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. Costumer that will avail services as a product, then various service requirements can take the form of output requirements.
• Entrepreneur’s most critical task is to calculate the market size, and the potential value that market has for their startup business. Market research will determine entrepreneur possible customers in one locality.
• Market size is like a size of arena where the entrepreneurs will play their business. It is the approximate number of sellers and buyers in a particular market. Companies are interested in knowing the market size before launching a new product or service in the area.