LAS IN ENTREPRENEURSHIP

WEEK 4 ( OCT 15-22, 2021)

In previous lesson we learn about the creation of an entrepreneurial

ideas that lead to the identification of entrepreneurial opportunities, which in
turn results in the opening of an entrepreneurial venture. In opening the new
venture or a business, you need to determine the Unique Selling Proposition
(USP) and Value Proposition (VP) of your product as well as your target
market.
Value Proposition (VP) 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. In creating
Value Proposition, entrepreneurs will consider the basic elements:
• Target Customer
• Needs/opportunity
• Name of the product
• Name of the enterprise/company
There are many competitors in the market to establish superiority to
them. Entrepreneurs should think some alternative and how it works better.
An important aspect in Value Proposition must be truthful that will establish
credibility to the consumers.
Example: Potential value proposition is most common in small
businesses of your locality.
Aling Charing Sari-sari Store open only from 6:00 am to 6:00 pm, but Aling
Charing noticed that there are customers who go nearby town to look for a
convenience store at around 10:00 pm to 6:00 am. She believes that this is a
great opportunity for her store to operate 24/7. In this example, proposed
value proposition: “Charing Sari-sari Store, opens 24/7”.
The business describes sari-sari store – a basic retail store. The
assurance from this value proposition is because of the phrase “opens 24/7”,
Aling Charing Sarisari Store opens 24/7, which make it different from other
competitors.
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. As entrepreneur, you think of marketing concept that persuade
your target customers. The following questions you may ask in doing this,
What the customers want? What brand does well? What your competitor does
well?

Some 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)
As entrepreneur, present the best feature of your product or services
that are different from other competitors. Identifying the unique selling
proposition requires marketing research that you will learn from the other
modules. In promoting your products or services, make sure that it is very
specific and put details that emphasize the differentiator against the
competitors. Keep it short and simple and think of a tagline that is easy to
remember. Right now, the proposed unique selling proposition: “Charing Sari-
sari Store, opens 24/7”.
Readers get confused between value proposition and unique selling
proposition. The two propositions are used to differentiate the products from
competitors. For example, Jollibee is known to have a Filipino taste burger.
This brand has a unique selling point because of its tagline “Langhap Sarap”
Unique Value Proposition and Value Proposition are two most famous
tools used to explain why prospect customers buy each products and
services. Based on each definition, we learn that USP and VP are frameworks
of each business industry. The two propositions are valuable for the
entrepreneurs.
After you understand the value proposition and the unique selling
proposition, now it’s time to understand the target market, customers
requirement and market size. A. Target Market
 Market Targeting is a sage in market identification process that aims to
determine the buyers with common needs and characteristics. Prospect
customers are market segment that entrepreneurial venture intends to serve.
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. Product is more affordable, efficient, and effective
way to reach potential clients and generate business.

B. Customer Requirements

Customer requirements are the specific characteristics that the customers

need from a product or a service.
There can be two types of customer requirements:
1. Service Requirement
2. Output Requirement Service
Requirement:
Intangible thing or product that is not able to be touched but customer
can feel the fulfillment. There are elements in service requirement 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.
Output Requirements:
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.
C. Market Size
Entrepreneur’s most critical task is to calculate the market size, and the
potential value that market has for their startup business. Market research will
determine entrepreneur possible customers in one locality.
 What is Market Size?
Market size is 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. In determining the
market size, entrepreneur will conduct a strategic marketing research from
reliable sources using the following method. 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. Market size become the most important if you ever need to raise
funding for your business.

Activity 1 Identify whether Unique Selling Proposition or Value Proposition on

one’s product/service.
Example: Langhap Sarap Example: Unique Selling Proposition
1. Safeguard ___________________________
2. Love ko to ___________________________
3. Supermarket ___________________________
4. Surf ___________________________
5. Bukas kahit anong oras ___________________________
Activity 2. Determine what method of market segmentation (Geographic,
Demographic, Psychological and Behavioral Segmentation) will be used to
the following items.
1. We have Climate Change. ___________________
2. Over 60 years of age. ___________________
3. Branded (US Levi’s). ___________________
4. This product is good for my health. ___________________
5. Most People in the community are Roman ___________________
 Additional Activities
Give at least 5 products being advertised or
promoted on television. Evaluate each one according to
its USP, VP, method of segmentation used, customer requirements,
and who are target customers.

Product Method of Customer Target

Name USP VP Segmentation Requirements customers
Ex. Langhap Filipino Service &
Jollibee Sarap taste Psychological Output All people
burger

1.

2.

3.

4.

5.