Lesson 3: Recognize and Understand the Market Flashcards
a business or marketing statement that
summarizes why a consumer should buy a company’s product or use its service.
value proposition (VP)
the value proposition statement is often used to
convince a customer to purchase a particular product or service 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/company
an important aspect in value proposition
it must be truthful to establish credibility to the consumers
entrepreneurs should think of
other alternatives to make their products better
refers to how you sell your product
or services to your customer
unique selling proposition
in the unique selling proposition, you will address the
wants and desires of your customers
to think of marketing concepts to persuade your customers, you may ask the following quesitons
what do the customers want; what brand does well; what does your competitor do well
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 stands for
keep it short and simple
identifying the unique selling proposition requires
marketing research
put details that emphasize the
differentiator against the competitors
think of a tagline that is
easy to remember
a sage in market identification process that aims to
determine the buyers with common needs and characteristics.
market targeting (target market)
a market segment that an entrepreneurial venture intends to serve.
prospect customers
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
methods for segmenting the market
geographic, demographic, psychological, behavioral SEGMENTATION
the total market is divided according to geographical
location.
geographical segmentation
variables to consider in geographical segmentation
climate, dominant ethnic group, culture, density (either rural or urban)
the total market is divided based on consumers
demographic segmentation
variables to consider in demographic segmentation
gender, age, income, occupation, education, religion, ethnic group, family size
the total market is divided in terms of how customers think and
believe
psychological segmentation
variables to consider in psychological segmentation
needs and wants; attitudes; social class; personality traits; knowledge and awareness; brand concept; lifestyle
the total market is divided according to customers’ behavior pattern as
they interact with a company.
behavioral segmentation
variables to consider in behavioral segmentation
perceptions, knowledge, reaction, benefits, loyalty, responses
the specific characteristics that the customers
need from a product or a service.
customer requirements
two types of customer requiremnets
service and output REQUIREMENT
An intangible thing or product that cannot be touched but the customer can
feel the fulfillment.
service requirement
elements of service requirement
on-time delivery, service with a smile, easy payment
It includes all aspects of how a customer
expects to be treated while purchasing a product and how easy the buying process
goes
service requirement
Tangible thing or things that can be seen.
output requirements
Characteristic specifications that
a consumer expects to be fulfilled in the product.
output requirements
examples of output requiremnets
on-time arrival when hiring a multi-cab or loudness and clarity when buying a speaker
is like a size of arena where the entrepreneurs will play their business
market size
The entrepreneur’s most critical task is to
calculate the market size and the potential value that the market has for their start-up busines
Market research will
determine the
entrepreneur’s possible customers in one locality
It is the approximate number of sellers and buyers in a particular market
market size
steps in determining the target market
estimate the approximate number of customers that will buy the product/avail your services; estimate the customers who will probably dislike your product/service; estimate the market share
Market size becomes the
most important factor if ever you need to raise funding for your business
estimating the market share involves
plotting and calculating the competitor’s market share to determine the portion of the new venture
