#OA2

Online Assessment No. 2

5 items (2 points each)

Which of the following

statements are true and
which are false?
1. A sole proprietorship is run
by many people.

True
False
2. A potential market is the part of
the market you can capture in the
future.

True
False
3. A business can be started in a
residence or rented premises.

True
False
4. An entrepreneur cannot be
proactive about his ways on how to
grow and change his business for the
better.

True
False
5. In identifying your potential
markets, you are not just increasing
your share for today but ensuring
the increase of your profit in the
future.

True
False
A value proposition refers to the value a
company promises to deliver
to customers should they choose to buy their
product.

It should convince a potential customer why

your service or product will be of
more value to them than similar offerings
from your competition.
A value proposition can be
presented as a business or
marketing statement that a
company uses to
summarize why a
consumer should buy a
product or use a service.
HOW TO DEVELOP A VALUE PROPOSITION?

1. Understand the benefits customers receive.

2. Connect benefits to the value.
3. Target your audience.
4. Differentiate the product and service.
5. Put everything into a clear and
easy to read sentence.
6. Place it everywhere.
7. Test its effectiveness.
1. Understand the benefits customers receive.

To start creating a value proposition, leaders

need to understand how they create value.

The benefits the company provides to the

consumers should be listed.

Everything from the product’s use, customer

service, delivery processes, and any other
component should be on the list
2. Connect benefits to the value.

- How do the benefits help the

customer?
- Does the product address a problem
or need?
- Does the buying process significantly
reduce the purchase time?
- How can customers expect to benefit
from what the company offers?
3. Target your audience.

Every businesses product is not for every

consumer.

Leaders need to sharpen the focus and

decide who is the target segment for the
product or service.

This information can include location,

demographics, income, occupation,
hobbies, and many other factors.
4. Differentiate the product and service.

This might be one of the most critical components of all.

Leaders need to work with their teams to see how they

are different from competitors.

This step revolves around the question of why consumers

should pick this company over someone else’s.

It is a good idea to look at direct competitors and note

what they do similarly, and how the company either
does it better or more efficiently.
5. Put everything into a clear and easy to read
sentence.

Through research and analysis, leaders should

emerge with an idea of what to include in their
value proposition.

The purpose of this statement should not be long but

it should quickly inform customers of who the
company is.

Customers should be able to read over the value

proposition in five seconds to get a feel for the
benefits and value the business offers.
6. Place it everywhere.

It should be included in a
website, logos, email
newsletter signatures, on a
company brochure, and
everywhere possible.
7. Test its effectiveness.

- Have conversions increased?

- Are more people visiting the
website?
- Are more email newsletters being
opened?
- How are competitors responding?