week 4

• Business Plan


  • outlines the basic concept of business (what problem will be solved)
• Business Plan


  It should lay out your basic idea for the venture, where you are now, where you want to go, and how you intend to get there
• Business Plan


  • blueprint to keep the entrepreneur on the right track.
  • It provides guidance, influence, leadership, and communication of ideas, goals, and means to the partners, employees, and others
• Marketing


  • set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
• Marketing Plan


  A report that outlines your marketing strategy for the coming year, quarter or month
• Value Proposition


  simply states why a customer should buy a certain product or avail a service
• Value Proposition


  It is the major driver in customer purchase or service availment
• Value Proposition


  be direct in addressing the problems of the customers and should differentiate itself from the competitors
• Value Proposition


  • Uber, a Transport Network Vehicle (TNV) Service, expertly highlights everything that is bad about taking a traditional taxi and points out how its service is superior
  • The simple yet highly effective "Tap the app, get a ride" excellently conveys the simplicity and ease that lies at the heart of what makes it such a tempting service
• Opportunity


  Aling Tere's 24/7 Sari-sari Store, semi-convenience store, air conditioned, installed CCTV cameras, hired three employees
• Proposed value proposition


  "Tindahang maaasahan, bukas kahit anong oras!"
• Commit your work to the Lord, and your plans will be established. - Proverbs 16:3
• Unique Selling Proposition


  This refers to how you will sell the product or service to your customers. After creating your value proposition, you have to figure out how to advertise or promote your product/ service
• Tips on Creating Effective Unique Selling Proposition

  • Identify and rank the uniqueness of the product/ service attribute
  • Be very specific. Emphasize what makes your product/ service a different and a better one
  • KISS. Keep It Short and Simple
• Marketing Research


  A comprehensive process of understanding the customer's intricacies and the industry they revolve in
• Market Size


  It is simply the size of the area where the entrepreneur's business will play. It is the approximation of the total number of buyers and sellers in a particular market
• Direct Competitor


  Offer the same products and services
• Indirect Competitor


  Don't offer exactly the same product type but still compete with the business indirectly
• Customer Requirements


  Specific features and characteristics that the customers need from a product or service
• Market Intelligence


  Customer profiling, drives the entrepreneur on what correct strategies and tactics to employ
• Market Segmentation


  The process of grouping similar or homogeneous customers according to demographic, psychographic, geographic (location), and behavior
• Market Segmentation


  An entrepreneurial strategy designed primarily to divide the whole market into smaller segments
• Demographic Segmentation


  The process of grouping customers according to relevant socioeconomic variables such as age, religion, gender, occupation, income range, social class, and ethnicity
• Psychographic Segmentation


  The process of grouping customers according to their perceptions, way of life, motivations, and inclinations
• Psychographic Segmentation


  Perception is a process wherein an individual receives an external stimulus using the five senses: seeing, hearing, smelling, touching, and tasting
• Psychographic Segmentation


  Motivation goes to the roots of customer's needs and wants. This can either be physiological or psychological
• Psychographic Segmentation


  Way of life is also a variable. You can live simply with the basic things around you or the other way around. Whichever it is, there are goods/ services which an individual buys/avails depending on his way of life
• Psychographic Segmentation


  Customers' inclinations involve preferring one product over another as a result of gaining a refreshing experience when using the product
• Psychographic Segmentation


  • Children often go to school where their parents studied out of other good schools because of the quality education they've got from the said institution
  • We do our grocery shopping in one mart we like best. We buy our medicines from the pharmacy we trusted. We buy the shampoo our hair feels out of other products. We dine at our favorite restaurant
• Geographic Segmentation


  Grouping customers according to their location (street, a barangay, a town, city, province, or region)
• Behavioral Segmentation


  The process of grouping the customers according to their actions. These behaviors are instigated by occasions, desired benefits, loyalty, and usage of products and services
• Behavioral Segmentation


  Using customer's desired benefits help the entrepreneur determine the exact needs of the customer
• Behavioral Segmentation


  Loyalty is the result of maintaining satisfied customers. An entrepreneur's goal is to inform, persuade, and remind customers to buy the good/ avail the service consistently. Loyalty programs and rewards are created to get customers buy/ avail from us only
• Area of residence


  Affects how people buy goods and/or avail services
• Behavioral Segmentation


  Grouping customers according to their actions, such as occasions, desired benefits, loyalty, and usage of products and services
• Desired benefits


  Help the entrepreneur determine the exact needs of the customer (e.g. wash and dry services vs. wash, dry, and press; haircut vs. haircut with free massage)
• Loyalty


  The result of maintaining satisfied customers; an entrepreneur's goal is to inform, persuade, and remind customers to buy the good/avail the service consistently through loyalty programs and rewards
• Usage of products or availment of service


  Describes how often a product is being used or the service is being availed (light users, medium users, heavy users)
• Technographic Segmentation


  Categorizing consumers based on their technology usage, preferences, and behaviors
• Market Aggregation


  When an entrepreneur prefers to deal with a broader market because the product/service he offers is suited for an undifferentiated market