2. This module will also let us understand and
identify:
• What makes a product or service stand out from
the competitors through defining the UNIQUE
SELLING PROPOSITION and VALUE
PROPOSITION of the product/service.
• Behavior, attitude and psychology of the
entrepreneur’s customers.
• Application and details of 7p’s of marketing
• Fundamentals in brand management
3. • Business plan – is a comprehensive
paper that details the situation analysis,
objectives, strategies, and tactics, and how
to monitor and control the enterprise.
4. Value Proposition and Unique Selling
Proposition
• Marketing Process
- identifying the customers’ needs (value
proposition)
- customers want or desire (unique selling
proposition)
Value proposition (VP) – simply states why a
customer should buy a certain product or service.
Unique selling proposition (USP) – refers to
how you will sell the product or service to your
customers.
5. Value Proposition and Unique Selling
Proposition
Tips for the entrepreneur on how to create an
effective value proposition to the target customers:
1. Prepare a situation analysis that details the
problem(s) of the customers.
2. Make your value proposition straight to the point,
simple and specific.
3. Highlight the value of your product or service.
4. Adapt the language of your market.
5. Add credibility-enhancing elements.
6. Differentiate your value proposition with you
customers.
6. Value Proposition and Unique Selling
Proposition
Tips for the entrepreneur on how to create an
effective unique selling proposition to the target
customers:
1. Identify and rank the uniqueness of the
product or service attribute
2. Be very specific
3. KISS (Keep it short and simple)
7. Aling Tere’s Sari-Sari Store
Situation Analysis:
•Proposed value proposition:
“Tindahang maasahan, bukas
kahit anong oras!”
8. • Situation Analysis:
Prior to the establishment of a sari-sari store, Aling Tere notices
that there is a convenience store in her vicinity, where many call center
agents, nurses, and construction workers buy food, beverages, and other
products during odd hours (from 10 PM to 6 Am). She discovers that the
customers either ride a tricycle or a jeepney just to reach the convenience
store. There are two sari-sari stores nearby, but they close at 9 PM. Aling
Tere believes this is an opportunity for a sari-sari store business with a
twist.
Aling Tere realizes she needs to address the needs of the customers too
differentiate her business from the competition. She decided to establish a
24/7 sari-sari store. As an initial investment, Aling Tere hires three
employees who will help her run the sari-sari store in three shifts. During
their break, Aling Tere mans the sari-sari store herself. She designs her
sari-sari store like a semi-convenience store, where customers can freely
go and choose the product they want. It is also air-conditioned. For
security purposes, she installs a CCTV camera. Her task now is to craft a
worthwhile value proposition for the potential customers.
Aling Tere’s Sari-Sari Store
9. Aling Tere’s Sari-Sari Store
Situation Analysis: USP
7Ps P or S Place Price Promot
ion
People Packag
ing
Proces
s
USP
description
Retail
produc
ts
Near a
call
center;
public
hospital;
construc
tion site
Compe
tetive
Signage 3 shifts
of Aling
Tere’s
assts.
Semi –
convenie
nce
store
The only
sari2
store
that
operates
24 hours
a day, 7
days a
week
Unique? No No No No Yes Yes Yes
Ranking of
USPs
3 2 1
10. Know Your Customers
• After the general scan and research
performed during the course of
preparation for the VP and USP, it is now
time to dig deep and understand the target
customers through marketing research.
• Marketing research?
11. Know Your Customers
• MARKET SIZE
- the arena where the entrepreneur’s
business will play.
1st Step – Estimate the potential market.
- Market Space or Market Universe
2nd Step – Eliminate the customers who are
probably unlikely to buy the product/service.
3rd Step – Estimate the MARKET SHARE
12. Customers Requirements
• Customers – lifeblood of the business.
• Customer requirements – are specific features
and characteristics that the customers need from
a product or a service.
• Must know who buys, and what, when, where,
how and most importantly, why they buy.
• Customer requirements vary from person to
person.
13. Primary and Secondary Target Market
• Entrepreneurs must focus only on customers
whom they can serve beneficially.
• Market intelligence – includes customer
profiling, correct strategies and tactics.
• Market segmentation – process of grouping
similar or homogeneous customers accdg to
demographic, psychographic, geographic,
and behaviour.
