Entrepreneur Reviewer b.

Dominant ethnic group

Recognize and Understand the Market c. Culture
There are three processes in creating a new venture, d. Density (either rural or urban)
Entrepreneurial mind frame, Entrepreneurial heart 2. Demographic Segmentation – divided based
flame, and Entrepreneurial gut game. on consumers
In opening a new venture or business, you need to  Variables to consider
determine the Unique Selling Proposition (USP) and a. Gender
Value Proposition (VP) of your product as well as your b. Age
target market. c. Income
Unique Selling Proposition (USP) and Value Proposition d. Occupation
(VP)? e. Education
This part allows the entrepreneur to prepare himself on f. Religion
how to advertise and sell his product even if it is similar g. Ethnic group
to others. h. Family size
Value Proposition (VP) 3. Psychological Segmentation – divided in
 is a business or marketing statement that terms of how customers think and believe
summarizes why a consumer should buy a  Variables to consider
company's product or use its service. a. Needs and wants
 used to convince a customer to purchase a b. Attitudes
particular product or service to add a form of c. Social class
value to their lives. d. Personality traits
Basic elements to consider: e. Knowledge and awareness
 Target Customer f. Brand concept
 Needs/opportunity g. Lifestyle
 Name of the product 4. Behavioral Segmentation
 Name of the enterprise/company – divided according to customers’ behavior
Example: Potential value proposition is most common in pattern as they interact with a company.
small businesses of your locality.  Variables to consider
Aling Charing Sari-Sari Store opens only from 6:00 am to a. Perceptions
6:00 pm, but Aling Charing noticed that there are b. Knowledge
customers who go to a nearby town to look for a c. Reaction
convenience store at around 10:00 pm to 6:00 am. d. Benefits
She believes that this is a great opportunity for her e. Loyalty
store to operate 24/7. In this example, the proposed f. Responses
value proposition is: “Charing sari-sari Store, open B. Customer Requirements
24/7”. The business describes a sari-sari store – a basic Customer requirements are the specific
retail store. The assurance from this value proposition is characteristics that the customers need from a
because of the phrase “open 24/7”, Aling Charing’s sari- product or a service.
sari store opens 24/7, which makes it different from There can be two types of customer
other competitors. requirements:
1.Service Requirement
Unique Selling Proposition (USP) - An intangible thing or product that cannot be
 refers to how you sell your product or services touched but the customer can feel the
to your customer. You will address the wants fulfillment.
and desires of your customers. 2.Output Requirement
 think of marketing concepts that persuade your - Tangible thing or things that can be seen.
target customers. Characteristic specifications that a consumer
How to create an effective unique selling proposition to expects to be fulfilled in the product.
the target customers are: C. Market Size
 Identify and rank the uniqueness of the product or - The entrepreneur’s most critical task is to
services character calculate the market size, and the potential
 Be very Specific value that market has for their start-up
 Keep it Short and Simple (KISS) business.
Market research will determine the
Target Market entrepreneurs’ possible customers in one
A. Market Targeting locality.
 is a sage in market identification process that Market size
aims to determine the buyers with common  is like a size of the arena where the
needs and characteristics. entrepreneurs will play their business. It is the
 target marketing allows you to focus your approximate number of sellers and buyers in a
marketing money and brand message on a particular market. Companies are interested in
specific market that is more likely to buy from knowing the market size before launching a
you than other markets. new product or service in the area.
Commonly used methods for segmenting the markets  the three different data collection techniques
are follows.:  – SURVEY (Questionnaire)
1. Geographic segmentation – the total market is  are the most common way to gather primary
divided according to geographical location. research with the use of questionnaires or
 Variables to consider interview schedule
a. Climate  INTERVIEW
  INTERVIEW is one of the most reliable and - The third P in the Marketing Mix is price.
credible ways of getting relevant information The price is a serious component of the
from target customers. marketing mix.
 KINDS OF INTERVIEW - the value of money in exchange for a
- Personal interviews are the traditional product or service. Generally speaking, the
method of conducting an interview. It price is the amount or value that a
allows the researcher to establish customer gives up to enjoy the benefits of
relationship with potential participants and having or using a product or service. Thus,
therefore gain their cooperation. customers exchange a certain value for
- Telephone interviews are less expensive having or using the product – a value we
and less time-consuming, but the call price.
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
- is an excellent method for generating and
screening ideas and concepts. It can be
moderated group interviews and
brainstorming sessions that provide
information on user’s needs and behaviors.
7 P’s of Marketing
The 7 P’s of Marketing Mix There are several important
frameworks which you can utilize for the purpose of
marketing your product and services. A very crucial
structure among these is the “7 P’s of Marketing. The
framework of “7 Ps of marketing” includes product,
place, price, promotion people, packaging and
positioning.

1. PRODUCT
- Product refers to any goods or services that
is produced to meet the consumers’ wants,
tastes and preferences. E
The two (2) types of products
Consumer Goods and Business Goods.

Consumer Goods
- The demand for consumer goods is a 'direct
- demand'.
- The number of buyers is great.
- The buyers are found scattered in different
parts of the country / world.
- Each purchase will generally be of small
value.
- Buying is much influenced by emotions.
Business Goods.
- The demand for business goods is a 'derived
demand'. It is derived from the demand for
consumer goods, which are made using the
business goods
- Business goods have only limited number of
buyers
- The buyers are found to be concentrating in
certain regions only.
- Each purchase involves a very high amount
(in money terms)
- Buying cannot be influenced by emotions
2. PLACE
- Place is the second P in the Marketing Mix.
Place represents the location where the
buyer and seller exchange goods or
services. It is also called as the distribution
channel. It can include any physical store as
well as virtual stores or online shops on the
Internet.
3. PRICE
4. PROMOTION
- Promotion is the fourth P in the Marketing
Mix. Promotion refers to the complete set
of activities, which communicate the
product, brand or service to the user. The
idea is to create an awareness, attract and
induce the consumers to buy the product,
in preference over others
PROMOTIONAL MIX
1. ADVERTISING
2. PUBLIC RELATIONS OR PR
3. PERSONAL SELLING
4. SALES PROMOTIONS
5. DIRECT MARKETING
5. PEOPLE
- the staff that makes it happen for you, your
audience, and your advertisers are the
people in marketing. This consist of each
person who is involved in the product or
service whether directly or indirectly.
6. PACKAGING
- Packaging is the sixth P in the Marketing
Mix. Packaging is a silent hero in the
marketing world.
- Packaging refers to the outside appearance
of a product and how it is presented to the
customers. The best packaging should be
attractive enough and cost efficient for the
customers. Packaging is highly functional. It
 is for protection, containment, information,
utility of use and promotion.
7. POSITIONING
- the seventh P in the Marketing Mix is
Positioning. When a company presents a
product or service in a way that is different from
the competitors, they are said to be
“positioning” it. Positioning refers to a process
used by marketers to create an image in the
minds of a target market.