Entrepreneurship
Unit 01. Developing a Business Plan
Market Targeting
- Breaking a market into segments and
concentrating marketing efforts on
one or a few key segments.
- Marketers select target markets using
four different strategies.
Target Market Coverage Strategies
1. Undifferentiated Targeting
- Also known as Aggregate Targeting or
Mass Marketing
- Lack of customer knowledge
- assumes that all members of a market
have similar needs that can be met
with a single marketing mix.
2. Differentiated Targeting
- Multi-segment Marketing
- The changing wants and needs of
customers have developed marketing
strategies that cater to several market
segments.
3. Concentrated Targeting
- Single Strategy
- Focuses all marketing efforts on a
single market segment
- Understands the needs, and motives of
the segment’s customers and designs
a specialized marketing mix.
4. Niche Marketing
- Company chooses to target a small
market with significant purchasing
power.
Market Positioning
Product Positioning
- Process of perceiving and retaining in
the mind of the customers and
advantages and attributes of the
product.
- a complex set of perceptions,
impressions and feelings that the
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consumers hold in their minds against
the competing brand available in the
market.
Two Approaches Market Positioning
Head-to-Head Positioning
- competing directly with competitors
on similar product attributes in the
same target markets.
Differentiation Positioning
- in order to position a product in the
market, the company has to decide on
a differentiation strategy or
competitive advantage
Competitive Advantage
- is a product’s advantage over its
competitors gained by offering
consumers better value.
- This is also referred to as a unique
selling proposition (USP).
Examples of Differentiation Strategies:
1. Product Differentiation
2. Service Differentiation
3. Channel Differentiation
4. People Differentiation
5. Image Differentiation
Positioning Statement
- a brief description of the target market
as well as a convincing picture of how
the company wants that market to
perceive the brand.
- an internal tool.
- It helps maintain focus on the brand
and its VP while working on the market
strategy and tactics
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Unit 01. Developing a Business Plan
Six keys to keep in mind about a Positioning
statement
1. It is simple, memorable, and tailored to
the target market.
2. It provides an unmistakable and easily
understood picture of the brand that
differentiates it from competitors
3. It is credible, and the brand can deliver
on its promise
4. The brand can be the sole occupier of
this particular position in the market.
The brand can “own” it.
5. It helps evaluate whether or not
marketing decisions are consistent
with and supportive of the brand.
6. It leaves room for growth.
Market Research
the process of determining the viability of a new
service or product through research conducted
directly with potential customers.
Qualitative Research
- Identifying the written or spoken
opinions of customers
- Qualitative non-numeric data focuses
on the why rather than the what of
social phenomena.
- Designed to reveal a target audience’s
range of behavior and the perceptions
that drive it with reference to specific
topics or issues.
Quantitative Research
- Analyzing the customers’ preferences
by using relevant statistics
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- Emphasize objective measurements
and the statistical, mathematical, or
numeric analysis of data collected.
- Done through polls, questionnaires,
and surveys, or by manipulating
preexisting statistical data using a
variety of computational techniques.
Four most common methods of collecting data
Interview
- One of the most reliable and credible
ways of getting relevant information
from the target customers.
- A face-to-face contact where the
researcher asks pertinent questions
that will give him significant pieces of
info about the problem that he will
solve.
Sampling - the selection of respondents that
statistically represent the total population.
Unstructured Interview
- Informal type of interview and does not
follow a specific set of questions.
Structures Interview
- Employs a specific set of questions and
produces quantitative data.
The Focus Group Discussion (FGD)
- Commonly used by market researchers
to capture qualitative results from
target customers.
- A process of mining customer and
noncustomer experience and insights
about a specific product or service.
Observation
- One of the preferred and practical
methods of generating ideas because
the researcher documents the
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Unit 01. Developing a Business Plan Padayon!

behavioral patterns of people or of 1. Sampling techniques

objects or events without necessarily Sample
requiring them to participate in the - Percentage of a specific population
research process. carefully chosen by the researcher to
Human Observation generally represent the whole
1. Customer purchase patterns population.
- Understand the buying behavior of the Census
customers (pain points, buying - A method where the researcher may
patterns, location, price, or promotion). choose to include the whole population
2. Mystery shopping in the research project.
- Researcher pretends he or she is a Randomization
customer of his or her own business or - Wherein the researcher needs to
the competitor’s. assure that every sample has an equal
Machine Observation representation for the selection
1. Video-cameras or closed-circuit princess to be unbiased.
television (CCTV) Sampling error
- Positioned within the business - A range of inaccuracy to which a
premises. They record the customers sample might vary from the particular
in their organic shopping or service population.
behavior, - Always reflected in the research
2. Traffic counters results inferred from the population.
- Determine foot traffic or vehicular
traffic in a particular location. Probability Sampling
3. Web analytics - Samples are given equitable chances
- Online tool that tracks the or nonzero chances of being selected
performance of a Web site. from a population.
4. Barcode scanners Nonprobability Sampling
- Help researchers understand the - Does not give the samples equal
purchase behavior of the customers by chances of being selected, because
reading the product codes and samples are instead selected
generate relevant sales information. according to their accessibility or
5. GPS technology personal choice of the researcher.
- Tracking of vehicles and pedestrians
exposed to out-of-home 2. Sample size
advertisements. - The number of respondents to be
surveyed.
Traditional and Online Surveys - The sample size must be the right size.
- Process of getting answers from a
sample of respondents derived from a 3. Questionnaire Blueprint
particular population.

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Entrepreneurship
Unit 01. Developing a Business Plan
Product Life Cycle
A product certainly has to pass through a life
cycle keeping a few facts intact, such as:
● Product life limitation
● Different challenges and opportunities.
● Profits rise and fall.
● Strategy planning for financial,
manufacturing, human resource, and
marketing in each phase.
A product cycle portrays a curve in four stages:
I. Introduction
II. Growth
III. Maturity
IV. Decline
Dettol
- considered one of the veteran
products in its category. It has
positively engaged its customers to
use Dettol over and over again.
However, the increasing demand
forcleansing products for different
purposes, e g a feasible handwash, a
sanitary shave, or a hygienic utensil
washing product, leads to brand
categorization and growth.
Introduction
- It started in 1933 as an antiseptic
liquid and is now the most trusted
antiseptic cleansing liquid. An iconic
brand from Reckitt Benckiser is now a
300 crore brand. There are many
involved during the introduction phase
expense engaged in promotional
activities, high operational costs, etc.
The majority of cases during the
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introduction phase tend to contribute
toward profits
- Costs are high
- Little or no competition
- Demand has to be created
- Overcoming customer hesitance to
buy the product. That’s when
Advertising works the best
Growth
- Dettol’s growth trend has been slow
but steady over the years, and many
initiatives taken in recent years have
started yielding results. It celebrated
its 75 years of market dominance in
the year 2008
- Characteristics:
Firstly, it forms a basis for rapid growth
in sales and profits
Public Awareness increases
- Competition increase with new players
in establishing the market
Maturity
- Consumers begin to see the product as
an “ in its category. The team knows it
has to address various challenges to
achieve its ambitious target
consumers see the need for germ
killing only in specific situations,
resulting in rough usage and
seasonality.
- The brand has to fight in a competing
environment in which new variants and
re launches drive growth It is critical to
determine what where the business
should push to optimize the marketing
spend and further accelerate the
brand growth
- In this stage, the product:
a. Earns maximum profit
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Entrepreneurship
Unit 01. Developing a Business Plan
b. Costs are lowered due to
production and smooth
operation functionality
c. Sales volume is increased,
and saturation is at its peak
Decline
- Today’s world demands a different
product variance for various product
utilities. A handwash for a quick hand
clean, separate antiseptic cream for
shaving, and sanitize clothes and
utensils. There cannot be a direct
decline, but the race to achieve
leadership in every category may have
caused stagnant growth in antiseptic
sales.
- Sales volume diminishes
- An emerging competitor is holding
another significant share of the market
- Product tends to lose its brand image
and becomes more of a commodity
Fundamentals of Product Development
Product Development
- the process of developing, testing, and
commercializing a product or service
with the ultimate objective of solving
the problem of the primary target
market
- Composed of four sequential steps:
- Developing a product or
service description
- Creating a prototype
- Testing the prototype
- Validating the market
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Developing a product or service description
- describes how a product or service
works and how it benefits the
customers
- the blueprint of all business operations
- the entrepreneur should take note of
the following regarding the product or
service description:
1. It should directly address the
primary target market in a
personal manner using
everyday language.
2. It should highlight the
features that will cater to the
customer’s needs or address
the customer’s problems.
3. Realistic superlatives should
be used for the product
description.
Creating a prototype
- most exciting but also very challenging
parts of product or service
development
- A Prototype is a model or sample of a
new product or service that is created
to test a product concept or service
process.
- the stage where the entrepreneur can
experiment, develop, and make some
improvements in the potential product
or service
Technique for creating a prototype:
Studying the competitor’s product or service
Advantage:
1. enables the entrepreneur to engage in
trial-and-error, provides room for
improvements, and refines the
functionality of the product design or
service process.
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Entrepreneurship
Unit 01. Developing a Business Plan
2. provides the entrepreneur a window to
test the performance and
specifications of various materials and
service processes
3. A prototype helps the entrepreneur
effectively describe the product or
service to the product team
4. elicits respect from key stakeholders
and customers
Testing the prototype
- Testing the prototype is a vital process
before an actual product or service is
launched to the market.
- It will uncover the final loopholes that
need to be fixed before
commercialization.
- It gives the entrepreneur a leeway to
examine and scrutinize the prototype
and provide feedback as to what can
be improved before the launch.
Testing Methods:
1. Focus Group Discussion
- Participants provide relevant insights.
To identify errors, deficiencies, and
issues that may impede the success of
the product.
2. Legality and Ethical Test
- Ensure that the p/s complies with all
relevant laws and regulations and has
a necessary permit or license to
operate a particular business.
3. Safety Test
- Ensure that the product is safe to use,
safe to be consumed, and safe to be
applied.
4. Product Costing Test
- Examine every stage of the
manufacturing to evaluate and finalize
the costs involved. Modification in the
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manufacturing process or service
blueprint can still be made at this point
5. Component Test
- Each component must be tested
independently to identify component
failures.
6. Competitors’ Product/Service Test
- Test a similar line of products or
competitors’ products to compare and
get the best practices to be applied.
Validating the Market
- discovering if the intended primary
target will be buying the product or
availing the service.
- This is also the time to deeply
understand the product or service’s
value to the customer and their
prospective purchase behavior
because it helps the entrepreneur
build a more relevant and meaningful
product or service.
- the last step before the product or
service can be introduced to the
market.
- Will the primary target market
like the product or service?
- Will the primary target market
buy the product or service
when it is already in the
market?