Entrep 2nd SEM (MIDTERM)

• Value Proposition (VP)


  A business or marketing statement that summarizes why a consumer should buy a company's product or use its service
• Unique Selling Proposition (USP)


  How you sell your product or services to your customer, addressing the wants and desires of your customers
• Market Targeting


  A stage in the market identification process that aims to determine the buyers with common needs and characteristics
• Three Factors That Will Determine Your Customer

  • Target Market
  • Customer Requirements
  • Market Size
• Geographic segmentation


  • The total market is divided according to geographical location
  • Variables to consider: Climate, Dominant ethnic group, Culture, Density (rural or urban)
• Demographic Segmentation


  • Divided based on consumers
  • Variables to consider: Gender, Age, Income, Occupation, Education, Religion, Ethnic group, Family Size
• Psychological Segmentation


  • Divided in terms of how customers think and believe
  • Variables to consider: Needs and wants, Attitudes, Social class, Personality traits, Knowledge and Awareness, Brand concept, Lifestyle
• Behavioral Segmentation


  • Divided according to customers' behavior pattern as they interact with a company
  • Variables to consider: Perceptions, Knowledge, Reaction, Benefits, Loyalty, Responses
• Customer Requirements


  The specific characteristics that the customers need from a product or a service
• Two Types of Customer Requirements

  • Service (intangible, cannot be touched but customer can feel the fulfillment)
  • Output (tangible, characteristic specifications that a consumer expects to be fulfilled in the product)
• Market size


  The approximate number of sellers and buyers in a particular market
• Steps in Identifying the Size


  1. Estimate the Potential Market

  2. Estimate the Customers

  3. Estimate the Market Share
• Marketing Mix


  A set of controllable and connected variables that a company gathers to satisfy a customer better than its competitor
• The 7 P's of Marketing Mix

  • Product
  • Place
  • Price
  • Promotion
  • People
  • Packaging
  • Positioning
• Product


  Any goods or services that is produced to meet the consumers' wants, tastes and preferences
• Place


  The location where the buyer and seller exchange goods or services, also called the distribution channel
• Different Pricing Strategies

  • Penetration Pricing
  • Skimming Pricing
  • Competition Pricing
  • Product Line Pricing
  • Bundle Pricing
  • Premium Pricing
  • Psychological Pricing
  • Optional Pricing
  • Cost Plus Pricing
  • Cost Based Pricing
  • Value Based Pricing
• Promotional Mix


  • Advertising
  • Public Relations or PR
  • Personal Selling
  • Sales Promotions
  • Direct Marketing
• Packaging


  • Protection, Containment, Information, Utility of use, Promotion
• Positioning


  A process used by marketers to create an image in the minds of a target market
• Three Basic Concepts of Positioning


  • Functional Positions
  • Symbolic Positions
  • Experiential Positions
• Branding


  The process of creating a name, symbol, or design that identifies and differentiates a product from other products, used as a marketing tool towards establishing consumer awareness and fostering brand loyalty
• 3 Important Things to Consider in Branding

  • Determine your brand personality
  • Determine your target market
  • Determine your product or services / Be clear with your product identity
• Steps in Creating a Brand


  1. Think of a good brand name

  2. Create your Logo

  3. Design your brand communication
• Types of Brand Names

  • Descriptive
  • Evocative
  • Invented
  • Lexical
  • Acronym
  • Geographical
  • Founder
  • Suggestive
• Brand Elements


  • Brand name
  • Brand Logo
  • Brand symbols
  • Brand character
  • Brand slogan
• Proverbs 11:3 (NIV): '"The integrity of the upright guides them, but the unfaithful are destroyed by their duplicity."'