Etrepenuership c.

Income

What is Unique Selling Proposition (USP) and Value d. Occupation

Proposition (VP)? This part allows the entrepreneur
e. Education
to prepare himself on how to advertise and sell his
product even if it is similar to others. f. Religion
Value Proposition (VP) - is a business or marketing g. Ethnic group
statement that summarizes why a consumer should
buy a company's product or use its service. This h. Family size
statement is often used to convince a customer to 3. Psychological Segmentation – divided in terms of
purchase a particular product or service to add a form how customers think and believe
of value to their lives.
∙ Variables to consider
In creating Value Proposition, entrepreneurs will
consider the basic elements: a. Needs and wants

∙ Target Customer b. Attitudes

∙ Needs/opportunity c. Social class

∙ Name of the product d. Personality traits

∙ Name of the enterprise/company e. Knowledge and awareness

Unique Selling Proposition (USP) – refers to how you f. Brand concept

sell your product or services to your customer. You g. Lifestyle
will address the wants and desires of your customers.
4. Behavioral Segmentation – divided according to
A. Target Market customers’ behavior pattern as they interact with a
Market Targeting is a sage in market identification company.
process that aims to determine the buyers with ∙ Variables to consider
common needs and characteristics.
a. Perceptions
Prospect customers are a market segment that an
entrepreneurial venture intends to serve. b. Knowledge

Commonly used methods for segmenting the markets c. Reaction

are follows.:
d. Benefits
1. Geographic segmentation – the total market is
e. Loyalty
divided according to geographical location.
f. Responses
∙ Variables to consider
B. Customer Requirements
a. Climate
Customer requirements are the specific
b. Dominant ethnic group
characteristics that the customers need from a
c. Culture product or a service.

d. Density (either rural or urban) There can be two types of customer requirements:

2. Demographic Segmentation – divided based on 1.Service Requirement

consumers
2.Output Requirement
∙ Variables to consider
Service Requirement:
a. Gender
An intangible thing or product that cannot be touched
b. Age but the 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 expects to be treated
while purchasing a product and how easy the buying
process goes.

B. Market Size- The entrepreneur’s most critical

task is to calculate the market size, and the
potential value that market has for their start-
up business. Market research will determine
the entrepreneurs’ possible customers in one
locality.

What is Market Size? Market size is like a size of the

arena where the entrepreneurs will play their
business. It is the approximate number of sellers and
buyers in a particular market.

Assessment

1. What is the relationship between unique

selling proposition and value proposition?

persuades another to exchange money for a

product or service

2.