L4: Recognize and Understand the Market

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Created by
_str0wberry

Cards (14)

  • VALUE PROPOSITION (VP)
    • business or marketing statement that summarizes why a consumer should buy a company's product or use its service.
  • IN CREATING VALUE PROPOSITION, ENTREPRENEURS WILL CONSIDER THE BASIC ELEMENTS
    1. Target Market
    2. Needs / Opportunity
    3. Name of the Product
    4. Name of the Enterprise / Company
  • An important aspect in Value Proposition is that it must be truthful and that it should establish credibility to the consumers.
  • Unique Selling Proposition (USP)
    • refers to how you sell your product or services to your customer. You will address the wants and desires of your customers.
  • Some tips for the entrepreneur on how to create an effective unique selling proposition to the target customers are:
    • Identify and rank the uniqueness of the product or services character
    • Be very Specific
    • Keep it Short and Simple (KISS)
  • THREE FACTORS THAT WILL DETERMINE YOUR CUSTOMERS
    1. Target Market
    2. Customer Requirements
    3. Market Size
  • Target Market
    • determine the buyers with common needs and characteristics. Prospect customers are a market segment that an entrepreneurial venture intends to serve.
  • Customers Requirements
    • specific characteristics that the customers need from a product or a service.
  • Market Size
    • The entrepreneur's most critical task is to calculate the market size, and the potential value that market has for their start-up business. Market research will determine the entrepreneurs' possible customers in one locality.
  • Commonly used methods for segmenting the markets are follows:
    1. Geographic Segmentation
    2. Demographic Segmentation
    3. Psychological Segmentation
    4. Behavioral Segmentation
  • Two types of customer requirements:
    1. Service Requirement
    2. Output Requirement
  • Service Requirement
    • intangible thing or product that cannot be touched but the customer can feel the fulfillment.
  • Output Requirement
    • Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the product.
  • Market Size
    • size of the arena where the entrepreneurs will play their business. It is the approximate number of sellers and buyers in a particular market.