ENTREPRE-

NEURSHIP
GROU • LEAN JEAN B.
ENDING

P • RONNAMARIE
LETRODO
• LEAN CARBA

3 • KYLE BENJAMIN
LUCING
M A R K E
T
A LY S
 LEARNING
OUTCOMES
Describe the unique selling proposition and value proposition that differentiates
one`s product/service from existing product/services
Determine who the customers are in terms of:

• Target Market
• Customer requirements; and
• Market size
Validate customer-related concerns through:

• Interview
• Focused Group Discussion
• Survey
 VALUE
PROPOSITION (VP)
Is a business or This statement is often
marketing statement used to convince a
that summarizes why a customers to purchase a
consumer should buy a particular product or
company`s product or service to add a form of
use its service. value to their lives .
 VALUE
PROPOSITION
(VP)
Target Customer
In creating Value Needs/Opportunity
Proposition, Name of the product
entrepreneurs will Name of the
consider the basic enterprise/company
elements:
 UNIQUE SELLING
PROPOSITION (USP)
concept that persuade
your target customers.
Refers to how you sell The following questions
your product or you may ask in doing
services to your this, What the customers
customer. You will want? What brand does
address the wants and well? What your
desires of your competitor does well?
customers.
As entrepreneur, you
think of marketing
 UNIQUE SELLING
PROPOSITION (USP)
 Identify and rank the
Some tips for the uniqueness of the
entrepreneur on how to product or services
create an effective character
unique selling  Very Specific
proposition to the  Keep it short and
target customers: simple(KISS)
A. TARGET MARKET
Market targeting is a sage In targeting a specific market, it
in market identification will exclude people even if it
will not fit your criteria. Rather,
process that aims to
target marketing allows you to
determine the buyers with
focus your marketing money
common needs and that is more likely to buy from
characteristics. Prospect you that other markets. Product
customers are market is more affordable, efficient, and
segment that effective way to reach potential
entrepreneurial venture clients and generate business.
intends to serve.
 A. TARGET
MARKET
Market targeting is a
sage in market Prospect customers are
identification process market segment that
that aims to determine entrepreneurial venture
the buyers with intends to serve.
common needs and
characteristics.
 Common methods for segmenting the market are
follows.
1. GEOGRAPHICAL 2. DEMOGRAPHIC
SEGMENTATION SEGMENTATION
Divided based consumers.
The total market is divided
according to geographical  Variable to consider
location. a. Gender
 Variable to consider b. Age
c. Income
a. Climate d. Occupation
b. Dominant ethnic group e. Education
c. Culture f. Religion
d. Density (either rural or g. Ethnic group
urban) h. Family size
 3. PSYCHOLOGICAL 4. BEHAVIORAL
SEGMENTATION SEGMENTATION
Divided in terms for consumers Divided according to customers
think and believe. behavior pattern as they interact
with a company
 Variable to consider
a. Needs and wants  Variable to consider
b. Attitudes a. Perceptions
c. Social class b. Knowledge
d. Personality traits c. Reaction
e. Knowledge and d. Benefits
awareness e. Loyalty
f. Brand concept f. Responses
g. lifestyle
 B. CUSTOMER
REQUIREMENTS
There can be two types of
Customer requirements are customer requirements:
the specific characteristics
that the customers need form 1. Service Requirement
a product or a service. 2. Output Requirement
 SERVICE
REQUIREMENT
Intangible thing or product
that is not able to be touched It includes all aspects of how
but customer can feel the a customer expect to be
fulfillment. There are element treated while purchasing a
service requirement like on- product and how easy a
time delivery ,service with a buying process goes.
smile, easy payment etc.
 OUTPUT
REQUIREMENTS
Tangible things that can be seen.
For example, if the consumer
Characteristics specification that
a consumer expects to be buys gadgets (phone speaker),
fulfilled in the product.
the specification like the
Consumer that will avail services
as a product, then various service loudness and clarity are the
requirements can take the form
output requirements.
of output requirements.
.
C. MARKET
SIZE
Entrepreneur`s most Market research will
critical task is to determine
calculate the market entrepreneur
has for their startup possible customers
business. in one locality.
 WHAT IS Companies are interested
in knowing the market size
MARKET SIZE? before launching a new
product or service in the
Market size is like a size area. In determining the
of arena the entrepreneurs market size, entrepreneur
will play their business. It will conduct a strategic
is the approximate number marketing research from
of sellers and buyers in a reliable sources using the
particular market. following method.
 First step is to estimate  Third step is for the
the potential market- entrepreneur to estimate
approximate number of the market share to
customers that will buy determine the portion of
the product or avail your the new venture.
services.

 Second step is to Market size become the

estimate the customers most important if you ever
who probably dislike to need to raise funding for
buy your product or avail your business.
the services.
INTRODUCTIO
N
 To start a business, the understand their
first thing to do is to find customers’ needs and how
out what is the demand for their business should
the product by conducting a operate.
short market survey.
If an idea is found to be
feasible , this knowledge
It is better to do market
will in turn give the
survey (if necessary with
confidence to go ahead
assistance from partners or
when problems are
advisers) because they will
encountered, knowing that
then properly
their product is in demand.
 Sample questionnaire for a new product (Tomato Jam)
Question Answers
1. Do you eat other types of jam? Yes NO
2. Which type of jam do you like the best? List the types
3. Do you think you would like tomato jam? Yes No Not sure
1 2 3 4 5

Very good Good Average Bad Very bad

4. What do you think of the color of this tomato jam?
5. Do you like having the seeds in the jam?
6. What do you think about the flavor of this jam?
7. Do you like the texture of the jam?
8. What do you think about the jar?
9. What do you think about the label?

10. What else do you like the jam?

11. Is there anything that I can do to improve this jam?
Sources of new
product/service
 Sources of new
product/service
2. Exiting products and
1. Consumer
services
Monitor potential ideas and
Analysis of products and
need from customers and
formally arrange for consumers services uncovers way to
to express their opinion. improve offerings that may
result in a new product or
service.
 Sources of new
product/service 4. Government (Patent
Office)

3. Distribution Channels Files of the Patent Office

Channel members can help can suggest new product
suggest and market new possibilities. New product ideas
product. can come in response to
government regulations.
 Sources of new
product/service
5. Research and
Development
Conduct research on your
market and your customer
needs. This results to the
development and identification
of new and improved product
and services.
Methods of Generating
New Products/
services
Methods of Generating
New Products/ This is an excellent method
for generating screening ideas
services and concepts. It allows people
to be stimulated to greater
1. Focus Group creativity.
A moderator leads a group
of 8-14 participants through an
open, in depth discussion in a 2.. Brainstorming
directive or nondirective Good ideas emerge when
manner. the brainstorming effort focuses
on a specific product or market
area.
Methods of Generating
New Products/
services

3. Problem Inventory
Analysis Results must be carefully
evaluated as they may not
consumers are provided
actually reflect a new business
with a list of problems and are
opportunity.
asked to identify products that
have those problems.
 Generating New
Product/Services for
Conventional or
Innovative Business
1. Conventional b. Start a business due to the
business scenario needs of existing business
Good ideas emerge when contacts.
the brainstorming effort focuses
on a specific product or market c. Gain business inspiration
area. from your hobby or interest.

Below are the ways to start d. Gain inspiration from an

conventional business. imported items.

e. Explore the possibility of

a. Start a business that you
import business.
are familiar with.
2 . Innovative b. Gain an inspiration from the
problems and issues that
business scenario bothered you and your
peers.

Here are some ways to c. Study the usual or existing

introduce an innovative solutions and venture in the
business. alternative solution.

a. gain inspiration from the d. List down existing products

needs and wants of and find out their uses aside
customers. from what was stated
 SURVEY OF
MARKET SIZE
AND VALUE
 A different set of questions
is needed when assessing the This involves making a number
size of the market for a of assumptions and it is
particular type of product and important to consider the
the value of the market (the following:
amount of money spent on that
product each month or year). 1. Are the people
At the same time it is interviewed really
possible to gather information representative of all
about the types of people who potential consumers?
buy a particular food and where 2. Was the number of people
they buy it . interviewed enough?
3. Were people giving
accurate information?
 SAMPLE
QUESTIONNAIRE
ABOUT MARKET SIZE
AND VALUE
 Questions Answers
About the market size:
1. How often do you buy this product? Daily Weekly Monthly
2. Do you buy different amounts of different times
of the year? Yes No

3. When are the times that you buy the most?

4. How much do you buy each time? _______pc
5. When are the times you buy the least?
6. How much do you buy each time? _______pc
7. What is the amount of the food in the pack? P _____ per _____pc
About the market value:
8. How much do you pay for a pack of the food? P
9. What is the price difference for larger or smaller
packs? P

10. Does the price change at difference times of the

Yes No
year?
11. When is the price highest?
12. When is the price lowest?
About the customer:
13. Would you say that you have a low, Low medium high
medium, or high income in you household?

14. To which age group do you belong? (check one only)

1-20
21-40
41-60
Male/Female M F
 About sales outlets:
15. Where do you usually buy this food: (check one only)

Food Store
Local Shop
Kiosk
Supermarket
Others Write answer
Market share and
competition
 Market surveys and the
calculation of market size and
These figures should not be
value are important to find out
assumed to represent the scale of
whether the demand for a
production could be expected.
product really exists.
Even if no one else is currently
making a product locally, it is
It is therefore important
likely that once a new business
from the outset, to estimate the
starts production and is seen by
proportion of the total market
others to be successful, they too
that a new business could
will start up in competition.
reasonably expect to have. This
is referred as the market share.
Example – estimates of market share for a new food
business with different levels of competition
None
No. of other
producers Many Few One

Size of Large Small Large Small Large Small

competitors

Product range S D S D S D S D S D S D

Market share 0-2.5 0-5 5-10 10-15 0-2.5 5-10 10-15 20-30 0-5 10-15 30-50 40-80 100
(%)

S= similar products, D= dissimilar products

Competitors They also compete with the
Competitors are very profit margin and level of
service that they offer to
important to the success or retailers and with special offers
failure of a new business. The or incentives to customers

entrepreneur should recognize

that there are different types of New entrepreneurs must
therefore assess each of these
competitors. factors using a Strengths,
 General competitors Weakness Opportunities and
 Type competitors Threats (SWOT) analysis.
 Brand competitors
 Example of a SWOT Analysis of a New Business in
Relation to Competitors
My proposed business Competitor A Competitor B
Strengths Production likely to be sited close to Good brand image and range Product is cheaper that A and
retailers than can deliver at short notice. of products. sells well. They offer good
margin to retailers.

weaknesses Difficult to find good packaging Products are more expensive Poor quality product, poor
than B. Uses synthetic colors label design. I`m told by
and preservatives. retailers that supplies are
irregular and not always the
amount ordered.
Opportunities Retailers say demand for products without Strong promotion by A. Appears to be expanding
additives is increasing. I can produce deliveries to new areas
without added colors. according to newspaper
reports.
Threats There are few wealthy consumers and Cheaper products than B. May have over-expanded
price is most important factor. I am not distribution network and
yet sure of production costs. failing to make deliveries.
thank You!