ENTREP|LESSON 3

Question 1

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.

Answer 1

Value Proposition (VP)

Question 2

In creating Value Proposition, entrepreneurs will consider
the basic elements(4):

Answer 2

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

Question 3

refers to how you sell your product or services to your customer. You will address the wants and desires of your customers.

Answer 3

Unique selling proposition (USP)

Question 4

The following questions you may ask in doing this(3)

Answer 4

What the customers want? What brand does well? What your competitor does well?

Question 5

Tips for entrepreneur on how to create an effective unique selling proposition to the target customers (3)

Answer 5

• Identify and rank the uniqueness of the product or service character
• Very specific
• Keep it short and simple (KISS)

Question 6

• Two most famous tools used to explain why prospect customers
  buy each products and services
• are frameworks of
  each business industry

Answer 6

USP and VP

Question 7

• Market Targeting is a sage in market identification process that aims to determine the buyers with common needs and characteristics.
• In targeting a specific market, it will exclude people even if it will not fit your criteria. Rather, target marketing allows
  you to focus your marketing money and
  brand message on a specific market that is
  more likely to buy from you than other markets.

Answer 7

TARGET MARKET

Question 8

Commonly used methods for segmenting the market(4)

Answer 8

Geographic segmentation
Demographic Segmentation
Psychological Segmentation
Behavioral Segmentation

Question 9

the total market is divided according to geographical location.
Variables to consider:
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)

Answer 9

Geographic segmentation

Question 10

divided based consumers.
Variables to consider:
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size

Answer 10

Demographic Segmentation

Question 11

divided in terms for customers think and believe.
Variables to consider:
a. Needs and wants
b. Attitudes
c. Social class
d. Personality traits
e. Knowledge and awareness
f. Brand concept
g. Lifestyle

Answer 11

Psychological Segmentation

Question 12

divided according to customers behavior pattern as they interact with a
company.
Variables to consider:
a. Perceptions
b. Knowledge
c. Reaction
d. Benefits
e. Loyalty

Answer 12

Behavioral Segmentation

Question 13

are the specific characteristics that the customers need from a product or a service.

Answer 13

Customer requirements

Question 14

two types of customer requirements:

Answer 14

1. Service Requirement
2. Output Requirement

Question 16

Intangible thing or product that is not able to be touched but customer can feel the fulfillment. There are elements in ___________ 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

Answer 16

Service Requirement

Question 17

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.

Answer 17

Output Requirements

Question 18

Entrepreneur’s most critical task is to calculate the _________, and the potential value that market has for
their startup business. Market research will determine entrepreneur possible customers in one locality.

Answer 18

Market Size

Question 19

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

Answer 19

Market Size

Question 20

In determining the market size, entrepreneur will conduct a
strategic marketing research from reliable sources using the following method.

Answer 20

First step is to estimate the potential market – approximate number of customers that will buy the product or avail your services.

Second step
is to estimate the customers who probably dislike to buy your product or avail the services.

Third step is for the entrepreneur to estimate the market share, that means plotting and calculating of the competitor’s market
share to determine the portion of the new venture.