Entrepreneur

• Value refers to what the product does for customers that they’re prepared to pay
• The effective selling using advertising and marketing is part of value proposition
• Unique Selling Proposition was first proposed as a theory to understand the pattern in successful advertising
• In creating value proposition, entrepreneurs will consider the four (4) basic elements
• Market targeting is a stage in market identification process that aims to determine the set of buyers with common needs and characteristics
• Knowledge and awareness is one variable to consider in behavioral segmentation
• Service requirement is an intangible thing or product not able to be touched but feel the fulfillment
• Identify and rank the uniqueness of the product or services character is one tip for the entrepreneur on how to create an effective unique selling proposition
• Entrepreneurship Quarter 1 – Module 3
• Unique selling proposition is specific, often citing numbers or percentages
• Consumers have common wants and needs
• Demographic segmentation is the total market divided according to geographic location
• Module topics

  • Describe the unique selling proposition and value proposition that differentiate one’s product/service from existing products/services
  • Determine who the customers are in terms of Target market, Customer requirement, Market size
• Value Proposition


  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
• Identifying the unique selling proposition will not require marketing research
• Everyone can create a business vicinity map reflective of potential market in one’s locality/town
• Entrepreneurs will consider the health benefits of the consumers
• Recognize and Understand the Market
• Market size is like a world globe measurement
• Identifying the unique selling proposition requires marketing research and should emphasize the differentiator against competitors
• Target Market excludes people who do not fit the criteria and allows focusing marketing efforts on a specific market more likely to buy
• Value Proposition is used to convince a customer to purchase a particular product or service to add value to their lives
• Entrepreneurs think of marketing concepts that persuade target customers by considering what customers want, what brands do well, and what competitors do well
• Creating an Effective Unique Selling Proposition

  1. Identify and rank the uniqueness of the product or services character

  2. Be very specific

  3. Keep it short and simple (KISS)
• Value Proposition (VP)


  A business or marketing statement that summarizes why a consumer should buy a company's product or use its service
• An important aspect of Value Proposition must be truthful to establish credibility with consumers
• Readers often confuse Value Proposition and Unique Selling Proposition, which are used to differentiate products from competitors
• Creating Value Proposition

  1. Consider target customer

  2. Needs/opportunity

  3. Name of the product

  4. Name of the enterprise/company
• Unique Selling Proposition (USP) refers to how you sell your product or services to your customer by addressing their wants and desires
• Market Targeting aims to determine buyers with common needs and characteristics
• Variables for Geographic Segmentation


  • Climate
  • Dominant ethnic group
  • Culture
  • Density (either rural or urban)
• Variables for Demographic Segmentation


  • Gender
  • Age
  • Income
  • Occupation
  • Education
  • Religion
  • Ethnic group
• Common methods for segmenting the market

  • Geographic segmentation
  • Demographic Segmentation
• Entrepreneurs consider competitors in the market to establish superiority and think of alternatives to work better
• Output Requirement


  Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the product
• Customer requirements are the specific characteristics that customers need from a product or service
• Service Requirement


  Intangible thing or product that is not able to be touched but customer can feel the fulfillment
• Variables for Behavioral Segmentation


  • Perceptions
  • Knowledge
  • Reaction
  • Benefits
  • Loyalty
  • Responses
• Geographical location


  1. Climate

  2. Dominant ethnic group

  3. Culture

  4. Density (either rural or urban)
• Understanding your market helps compete with bigger competitors