Recognize

and
Understand
the Market
Learning Objectives
Describe the unique selling proposition
1
and value proposition.

2
Determine who the customers are in
terms of:
a. Target Market
b. Customer Requirement
c. Market Size
 Value Proposition
 It is a marketing statement that
summarizes why a consumer should buy a
company’s product to add a form of value
to their lives.
In creating Value Proposition,
entrepreneurs will consider the basic
elements:
 Target Customer
 Needs/opportunity
 Name of the Product
 Name of the enterprise
An important aspect in
Value Proposition must
be truthful that will
establish credibility to the
consumers.
 Example of Value Proposition

 Aling Charing
Sari-sari Store
open only from
6:00 am to 6:00
pm.
 Example of Value Proposition

“Charing Sari-
sari Store,
opens 24/7”.
 Unique Selling Proposition
 refers to how you sell your
product or services to your
customer. You will address the
needs and desires of your
customers..
Unique
S elling
Proposition
 You may ask the following question in
doing USP:
 What do the customers want? .

 What brand does well? .

 What does your competitor sell

well?.
 Unique Selling Proposition
Enterprise meets the
Winning
Needs and Wants Zone

Consumer
Needs Competitor meets the Losing
and Needs and Wants Zone

Wants
Competitive Battle
Ground Risky
 Tips in creating an effective USP

 Identify and rank the uniqueness

of the goods or services character.
 Be very specific. .

 Keep it Short and Simple (KISS). .

As an entrepreneur you
need to present the best
feature of your product
that are unique from
competitors.
 Example of USP

“Charing Sari-
sari Store,
opens 24/7”.
Value Proposition Unique Selling
Proposition

 It answers, why  It answers, what

should the differentiates
customers your product
purchase the from the
product? competitors?
VP and USP are
frameworks of each
business industry.
Market Targeting
 Market Targeting

 It is a sage in market identification

process that aims to determine the
buyers with common needs and
characteristics.
.
 Market Segmentation
 Dividing a market
composed of people with
different kinds of
characteristics and needs,
into various groups which
may exhibit some
common needs, for which
particular marketing mix
can be applied..
 Geographical
 It refers to dividing a
market based on
location. It is generally
observed that people’s
needs vary depending
on where they lived. .
 Demographic
It refers to dividing a
market based on
demographic variables
such as age, gender,
income, occupation,
education, religion, life
stage, and others.
 Psychographic

It refers to dividing a
market based on social
class, values, personality,
and lifestyle.
 Behavioral
It looks at several behavior variables:
occasion, benefits sought, user status, usage
rate, and loyalty status.
It is ideal to use several
segmentation in order to
reach more potential
customers.
 Customer
Requirements
 Customer Requirements
These are the specific characteristics that
the customers need from a product.

There can be two types of customer

requirements:
1. Service Requirement
2. Output Requirement
 Service Requirements
Intangible thing or product that is not
able to be touched but customer can
feel the fulfillment.
Examples: on-time delivery, service
with a smile, easy payment, etc.
 Output Requirements
Tangible thing or things that can be seen.
Characteristic specifications that a
consumer expects to be fulfilled in the
product.
Example: If the customer purchase a
gadget, the specification like clarity of
camera, and the like are the output
requirement.
Market Size
 Market Size

It is the approximate number of sellers and

buyers in a particular market.
Market size become the most important if
you ever need to raise funding for your
business.
 Determining the Market Size

1. Estimate the potential market.

2. Estimate the customers who probably
dislike to buy your product.
3. Estimate the market share. That means
plotting and calculating of the
competitors’ market share to determine
the portion of the new venture