Lesson 3: Recognize and Understand the Market

Question 1

a business or marketing statement that
summarizes why a consumer should buy a company’s product or use its service.

Answer 1

value proposition (VP)

Question 2

the value proposition statement is often used to

Answer 2

convince a customer to purchase a particular product or service to add a form of value to their lives

Question 3

in creating value proposition, entrepreneurs will consider the basic elements

Answer 3

target customer; needs/opportunity; name of the product; name of the enterprise/company

Question 4

an important aspect in value proposition

Answer 4

it must be truthful to establish credibility to the consumers

Question 5

entrepreneurs should think of

Answer 5

other alternatives to make their products better

Question 6

refers to how you sell your product
or services to your customer

Answer 6

unique selling proposition

Question 7

in the unique selling proposition, you will address the

Answer 7

wants and desires of your customers

Question 8

to think of marketing concepts to persuade your customers, you may ask the following quesitons

Answer 8

what do the customers want; what brand does well; what does your competitor do well

Question 9

tips for the entrepreneur on how to create an effective unique selling
proposition to the target customers

Answer 9

identify and rank the uniqueness of the product or services character; very specific; keep it short and simple

Question 10

KISS stands for

Answer 10

keep it short and simple

Question 11

identifying the unique selling proposition requires

Answer 11

marketing research

Question 12

put details that emphasize the

Answer 12

differentiator against the competitors

Question 13

think of a tagline that is

Answer 13

easy to remember

Question 14

a sage in market identification process that aims to
determine the buyers with common needs and characteristics.

Answer 14

market targeting (target market)

Question 15

a market segment that an entrepreneurial venture intends to serve.

Answer 15

prospect customers

Question 16

target marketing allows you to

Answer 16

focus your marketing money and brand message on a specific market that is more likely to buy from you than other markets

Question 17

methods for segmenting the market

Answer 17

geographic, demographic, psychological, behavioral SEGMENTATION

Question 18

the total market is divided according to geographical
location.

Answer 18

geographical segmentation

Question 19

variables to consider in geographical segmentation

Answer 19

climate, dominant ethnic group, culture, density (either rural or urban)

Question 20

the total market is divided based on consumers

Answer 20

demographic segmentation

Question 21

variables to consider in demographic segmentation

Answer 21

gender, age, income, occupation, education, religion, ethnic group, family size

Question 22

the total market is divided in terms of how customers think and
believe

Answer 22

psychological segmentation

Question 23

variables to consider in psychological segmentation

Answer 23

needs and wants; attitudes; social class; personality traits; knowledge and awareness; brand concept; lifestyle

Question 24

the total market is divided according to customers’ behavior pattern as
they interact with a company.

Answer 24

behavioral segmentation

Question 25

variables to consider in behavioral segmentation

Answer 25

perceptions, knowledge, reaction, benefits, loyalty, responses

Question 26

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

Answer 26

customer requirements

Question 27

two types of customer requiremnets

Answer 27

service and output REQUIREMENT

Question 28

An intangible thing or product that cannot be touched but the customer can
feel the fulfillment.

Answer 28

service requirement

Question 29

elements of service requirement

Answer 29

on-time delivery, service with a smile, easy payment

Question 30

It includes all aspects of how a customer
expects to be treated while purchasing a product and how easy the buying process
goes

Answer 30

service requirement

Question 31

Tangible thing or things that can be seen.

Answer 31

output requirements

Question 32

Characteristic specifications that
a consumer expects to be fulfilled in the product.

Answer 32

output requirements

Question 33

examples of output requiremnets

Answer 33

on-time arrival when hiring a multi-cab or loudness and clarity when buying a speaker

Question 34

is like a size of arena where the entrepreneurs will play their business

Answer 34

market size

Question 35

The entrepreneur’s most critical task is to

Answer 35

calculate the market size and the potential value that the market has for their start-up busines

Question 36

Market research will
determine the

Answer 36

entrepreneur’s possible customers in one locality

Question 37

It is the approximate number of sellers and buyers in a particular market

Answer 37

market size

Question 38

steps in determining the target market

Answer 38

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

Question 39

Market size becomes the

Answer 39

most important factor if ever you need to raise funding for your business

Question 40

estimating the market share involves

Answer 40

plotting and calculating the competitor’s market share to determine the portion of the new venture