ENTREPRENEURSHIP

QUARTER 1

KIMBERLY ANN B. RIVERO

Subject Teacher
Review:

Module 3: Recognize and Understand the Market

RECOGNIZE AND UNDERSTAND
THE MARKET
 OBJECTIVES
This module is divided into two topics:
• Describe the unique selling proposition and value proposition that
differentiate one’s product/service from existing products/services.
• Determine who the customers are in term of
• Target market
• Customer requirement
• Market size

Module 3: Recognize and Understand the Market

 Value proposition vs
Unique Selling Proposition

Module 3: Recognize and Understand the 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.

Module 3: Recognize and Understand the Market

In creating Value Proposition, entrepreneurs will consider the basic elements:

• Target Customer
• Needs/opportunity
• Name of the product
• Name of the enterprise/company

Example: Potential value proposition is most common in small

businesses of your locality.

Module 3: Recognize and Understand the Market

 OPEN FROM: 6AM-6PM

Module 3: Recognize and Understand the Market

 OPEN 24/7

Module 3: Recognize and Understand the Market

Module 3: Recognize and Understand the Market
“Jollibee promises to provide high-quality
food, fast and friendly service in a clean and
comfortable environment tailored to the
Filipino palate”.

“Well-trained teams that work in a culture of

integrity and humility, as well as a fun and
family-like atmosphere, make it feasible”.

Module 3: Recognize and Understand the Market

Module 3: Recognize and Understand the Market
GLOBE TELECOM
We put customers first. We
value people and together, we
make a difference. We act with
integrity. We care like an owner.

Module 3: Recognize and Understand the Market

Module 3: Recognize and Understand the Market
Facebook has
made it its mission to spread a
free medium of communication
and connectivity with people
across the world regardless of
their nationality, religion, culture
or background.

Module 3: Recognize and Understand the Market

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)

Module 3: Recognize and Understand the Market

Link: https://www.youtube.com/watch?v=LjD1Nv8hAiA
Module 3: Recognize and Understand the Market
https://www.youtube.com/watch?v=-XOgXlcpzEA
Module 3: Recognize and Understand the Market
Module 3: Recognize and Understand the Market
Module 3: Recognize and Understand the Market
A. CUSTOMER REQUIREMENT
Customer requirements are the specific characteristics that the customers need from a
product or a service.

There can be two types of customer requirements:

• 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 REQUIREMENT
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.

Module 3: Recognize and Understand the Market

B. 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.

1. Estimate the potential market – approximate number of customers that will

buy the product or avail your services.
2. Estimate the customers who probably dislike to buy your product or avail
the services.
3. Estimate the market share, that means plotting and calculating of the
market share to determine the portion of the new venture.

Module 3: Recognize and Understand the Market

C. 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.
Commonly used methods for segmenting the market are follows.

1. GEOGRAPHIC SEGMENTATION – the total market is divided according to

geographical location.

(Climate, Dominant ethnic group, Culture, Density (either rural or urban))

2. DEMOGRAPHIC SEGMENTATION – divided based consumers.

(Gender, Age, Income, Occupation, Education, Religion, Ethnic group, Family

size)

Module 3: Recognize and Understand the Market

3. PSYCHOLOGICAL SEGMENTATION- divided in terms for
customers think and believe. (Needs and wants, Attitudes, Social
class, Personality traits, Knowledge and awareness, Brand
concept, 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
Module 3: Recognize and Understand the Market
GROUP ACTIVITY 2: (CONCEPTUALIZING BUSINESS IDEA)
As an entrepreneur, you are planning to have a business. Using the following guide questions,
MAKE A COMMERCIAL OR SIMPLE ADVERTISEMENT.(2-3MINS.)

Module 3: Recognize and Understand the Market

 Commercial/Advertisement Rubric
CATEGORY 10 8 5
Creativity and Presentation The commercial is The commercial is somewhat The commercial shows little
creative,with originality and creative,with originality and creative, without creativity
the product is clearly the presentation of the and the product is not well
presented well. product is adequate. presented.
Visual Aids(props) The commercial makes good The commercial includes The commercial does not
use of visual aids or props. visual aids or props, but they include any visual aids or
are less significantly prop.
contribute to the commercial
and/or they are not well
done.
Team Work As a team member the As a team member the As a team member the
student ACTIVELY: student LESS: student DID NOT:
Demonstrated Demonstrated Demonstrated
enthusiasm,involvement and enthusiasm,involvement and enthusiasm,involvement and
emotional support towards emotional support towards emotional support towards
others. others. others.

Within time frame(2- The commercial is presented The commercial is presented The commercial presented is
3minutes) within the time frame. slightly outside the time significantly outside the time
frame. frame.

Module 3: Recognize and Understand the Market

THANK YOU!

Module 3: Recognize and Understand the Market