OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY

Tugas St. Balangasan Pagadian City Zamboanga Del Sur Philippines

Document Title:
ISO 9001:2015
COURSE MODULE IN
ENTREPRENEURSHIP

Lesson 1 Recognize and Understand the Market

In previous lesson we learn about the creation of an entrepreneurial ideas that

lead to the identification of entrepreneurial opportunities, which in turn results in the
opening of an entrepreneurial venture. In opening the new venture or a business, you
need to determine the Unique Selling Proposition (USP) and Value Proposition (VP) of
your product as well as your target market.

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. In creating Value Proposition, entrepreneurs will
consider the basic elements:
• Target Customer
• Needs/opportunity
• Name of the product
• Name of the enterprise/company

There are many competitors in the market to establish superiority to them.

Entrepreneurs should think some alternative and how it works better. An important
aspect in Value Proposition must be truthful that will establish credibility to the
consumers.
Example: Potential value proposition is most common in small businesses of your
locality.

Aling Charing Sari-sari Store open only from 6:00 am to 6:00 pm, but Aling Charing
noticed that there are customers who go 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, proposed value proposition: “Charing Sari-sari
Store, opens 24/7”.

The business describes sari-sari store – a basic retail store. The assurance from this
value proposition is because of the phrase “opens 24/7”, Aling Charing Sari-sari
Store opens 24/7, which make it different from other competitors.

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 think of marketing concept that persuade your target

customers. The following questions you may ask in doing this, What the customers
want? What brand does well? What your competitor does well?

Some tips for the entrepreneur on how to create an effective unique selling
proposition to the target customers:
• Identify and rank the uniqueness of the product or services character
• Very Specific
• Keep it short and simple (KISS)

Page 1 of 8
 OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
Tugas St. Balangasan Pagadian City Zamboanga Del Sur Philippines
Document Title:
ISO 9001:2015
COURSE MODULE IN
ENTREPRENEURSHIP
As entrepreneur, present the best feature of your product or services that are
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. Right now, the proposed unique selling proposition:
“Charing Sari-sari Store, opens 24/7”.

Readers get confused between value proposition and unique selling proposition. 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”

Value Proposition and Value Proposition are two most famous tools used to
explain why prospect customers buy each products and services. Base on each
definition, we learn that USP and VP are frameworks of each business industry. The
two propositions are valuable for the entrepreneurs.

After you understand the value proposition and the unique selling proposition, now
it’s time to understand the target market, customers requirement and market size.

A. 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 market segment that entrepreneurial venture intends to serve.

In targeting a specific market, it will exclude people even if it will not fit your criteria.
Rather, target marketing 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.
Product is more affordable, efficient, and effective way to reach potential clients and
generate business.

Commonly used methods for segmenting the market are follows.

1. Geographic segmentation – the total market is divided according to geographical
location.
• Variable to consider
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)

2. Demographic Segmentation – divided based consumers.

• Variable to consider
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size

3. Psychological Segmentation- divided in terms for customers think and believe.

• Variable to consider
a. Needs and wants
b. Attitudes
Page 2 of 8
 OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
Tugas St. Balangasan Pagadian City Zamboanga Del Sur Philippines
Document Title:
ISO 9001:2015
COURSE MODULE IN
ENTREPRENEURSHIP
c. Social class
d. Personality traits
e. Knowledge and awareness
f. Brand concept
g. Lifestyle

4. Behavioral Segmentation- divided according to customers behavior pattern as they

interact with a company.
• Variable to consider
a. Perceptions
b. Knowledge
c. Reaction
d. Benefits
e. Loyalty
f. Responses

B. Customer Requirements
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:
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.
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.

C. Market Size
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.

What is Market Size?

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. In determining the market size, entrepreneur will conduct a
strategic marketing research from reliable sources using the following method. First
step is to estimate the potential market – approximate number of customers that will
buy the product or avail your services. Second step is to estimate the customers who
probably dislike to buy your product or avail the services. Third step is 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. Market
size become the most important if you ever need to raise funding for your business.

Page 3 of 8
 OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
Tugas St. Balangasan Pagadian City Zamboanga Del Sur Philippines
Document Title:
ISO 9001:2015
COURSE MODULE IN
ENTREPRENEURSHIP

Activity No. 1. Give at least 5 products being advertised or promoted on television.

Evaluate each one according to its USP, VP, method of segmentation used, customer
requirements, and who are target customers.

Method of Customer Target

Product USP VP
Segmentation Requirements Customers
Filipino
Langhap Service &
Ex. Jollibee taste Psychological All people
Sarap Output
burger
1
2
3
4
5

Activity N0. 2. Identify whether Unique Selling Proposition or Value Proposition on

one’s product/service.
Example: Langhap Sarap Example: Unique Selling Proposition
1. Safeguard ___________________________
2. Love ko to ___________________________
3. Supermarket ___________________________
4. Surf ___________________________
5. Bukas kahit anong oras ___________________________

Activity No. 3. Determine what method of market segmentation (Geographic,

Demographic, Psychological and Behavioral Segmentation) will be used to the
following items.
1. We have Climate Change. ___________________
2. Over 60 years of age. ___________________
3. Branded (US Levi’s). ___________________
4. This product is good for my health. ___________________
5. Most People in the community are Roman Catholic. ___________________

Page 4 of 8
 OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
Tugas St. Balangasan Pagadian City Zamboanga Del Sur Philippines
Document Title:
ISO 9001:2015
COURSE MODULE IN
ENTREPRENEURSHIP

Lesson 2 Market Research

Firms and other business companies need to understand their service offerings
and their customers to ensure that their services will be adopted as solutions to
consumer needs. In order for the firms to recognize the needs of the market or the
customers, they need to conduct market research.

The Market Research or Marketing Research Process can be defined as the

process of gathering, analyzing and interpreting the information about the products
or the services to be offered for sale to the potential consumers in the market,

There are different ways to collect the data. The most important methods you can
consider are surveys, focus group discussion and interviews.

DATA COLLECTION is the most valuable tool of any type of research study.
Inaccurate data collection may cause mistakes and ultimately lead to invalid results.

TIPS in GATHERING DATA

• Organize collected data as soon as it is available
• Know what message you want to get across and then collect data that is relevant to
the message
• Collect more data
• Create more data
• Regularly run experiments or collect data
• Challenge your assumptions
• Set reasonable expectations
• Take note of interesting or significant data

In this lesson, we will consider the three different data collection techniques –
SURVEY (Questionnaire), INTERVIEW and FOCUS GROUP DISCUSSION – and
evaluate their suitability under different circumstances

SURVEYS are the most common way to gather primary research with the use
of questionnaires or interview schedule. These can be done via direct mail, over the
phone, internet (e.g. Google) or email, face-to-face or on Web (e.g. Skype or Viber).

When designing or constructing your own research questionnaire, remember the

following guidelines. (Edralin, 2016)
• Keep it simple as possible.
• Make sure it is clearly appealing and easy to read.
• Cluster or block related questions.
• Move from complex questions to more specific questions.
• Make sure questions are concise and easily understood.
• Avoid questions that are difficult to answer.
• Make sure any response scales used are consistent with categories that are
mutually exclusive.

Page 5 of 8
 OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
Tugas St. Balangasan Pagadian City Zamboanga Del Sur Philippines
Document Title:
ISO 9001:2015
COURSE MODULE IN
ENTREPRENEURSHIP
INTERVIEW is one of the most reliable and credible ways of getting relevant
information from target customers. It is typically done in personal between the
researcher/entrepreneur and a respondent where the researcher asks pertinent
questions that will give significant pieces of information about the problem that he
will solve. The interview is also helpful even when the business has already started
because the customers’ feedback provides the entrepreneur a glimpse of what the
customers think about the business.
Interviews normally last from 15 to 40 minutes, but they can last longer,
depending on the participants’ interest in the topic.

In astructured interview, the researcher asks a standard set of questions and nothing
more.(Leedy and Ormrod, 2001)
• Personal interviews are the traditional method of conducting an interview. It allows
the researcher to establish relationship with potential participants and therefore gain
their cooperation. It generates highest response rates in survey research. They also
allow the researcher to clarify indefinite answers and when necessary, seek follow-up
information.
• Telephone interviews are less expensive and less time consuming, but the
disadvantages are that the response rate is not as high as the face-to- face interview,
but considerably higher than the mailed questionnaire.

FOCUS GROUP DISCUSSION (FGD) - is an excellent method for generating

and screening ideas and concepts. It can be a moderated group interviews and
brainstorming sessions that provide information on user’s needs and behaviors.

The following are considerations in the use of focus group discussions in market
research:
• The length of the session is between 90 and 120 minutes.
• Usually, conduct focus groups discussion with 8 to 10 participants per group.
• Assign an expert moderator / facilitator who can manage group dynamics..
• Use a semi-structure or open-format discussion
• Strive for consistency in the group’s composition (for example, it may not be
advisable to have business customers and retail customers in the same focus group,
their needs are very different).

Aside from the main basic groups of research methods (quantitative, qualitative and
mixed), there are different tools that can be used to collect data. Interviews can be
done either in personal or over the phone. Surveys/questionnaires can be paper or
web based. Focus Group Discussions can be moderated group interviews and
brainstorming sessions that provide information on user’s needs and behaviors.

Page 6 of 8
 OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
Tugas St. Balangasan Pagadian City Zamboanga Del Sur Philippines
Document Title:
ISO 9001:2015
COURSE MODULE IN
ENTREPRENEURSHIP

Activity No. 1. Answer the following statements honestly. There is no right or wrong
answer. Indicate your response to the items by putting a check that best corresponds
to your answer.

Neither
Strongly Strongly
Disagre Agree or Agre
Questions Disagree Agree
e (2) Disagree e (4)
(1) (5)
(3)
I always think about having my
own business in the future.
I do activities related to starting
my own business
I have a strong desire to start my
own business
I will make every endeavor to start
my own business
I would like to follow the footsteps
of a successful entrepreneur
I will comply all the requirements
needed to start a business
I will be very happy when I am
able to start my own business
I know my family would support of
my dream to start a business
I would have a great opportunity of
being successful if I try to start a
business while I am still young
When problems come my way, I
will not easily give up while
starting my own business
TOTAl
After answering all the statements, add your score. Refer to the conversion and the
verbal interpretation of your score:
40 – 50 = Very high intention to become an entrepreneur
30 – 39 = High intention to become an entrepreneur
20 – 29 = Average intention to become an entrepreneur
19 & below = Low intention to become an entrepreneur

Page 7 of 8
 OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
Tugas St. Balangasan Pagadian City Zamboanga Del Sur Philippines
Document Title:
ISO 9001:2015
COURSE MODULE IN
ENTREPRENEURSHIP

Activity No. 2. Conduct a survey among 15 students in your school about “Milk
Tea”. Use the survey form below:

SURVEY FORM

Name of Respondent (optional): ____________________________________________

Age _______________ Gender: Male Female Year Level__________

What are your reasons for buying the product?

__________________________________________________________________________
__________________________________________________________________________

Where do you buy the product?________________________________________________

__________________________________________________________________________

Is it available when you need it?

Yes Sometimes No

What do you use as a substitute if it is not available?

__________________________________________________________________________
__________________________________________________________________________

Is the price affordable to you? Yes No

Page 8 of 8