MODULE 3:

Value Proposition & Unique selling Proposition

1. Marketing process -Start with identifying the costumers’ needs where you are tasked to
create a meaningful value proposition.
A VALUE PROPOSITON (VP) - Simply states why a customer should buy a certain
product or service.
The following tips for the entrepreneur on how to create an effective value proposition
to the target customers:
Prepare a situation analysis that details the problems of the costumers.
Make your value proposition straight to the point, simple and specific; in short, there
should be no complications.
Highlight the value of your product or service so that customers will easily get what
benefits you can provide.
Adapt to the language of your market. Ensure that your target market understands
clearly.
Add credibility- exchanging elements such as actual testimonials from customers,
partners, and other stakeholders, putting specific assurance elements.
Differentiate your value proposition with your competitors.
A UNIQUE SELLING PROPOSITION (USP)
- Refers to how you will sell the product or service to your costumers.
Tips for the entrepreneur on how to create an effective unique propositon 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)
2. Know Your Customers
Marketing research is a comprehensive process of understanding the customers’ intricacies
and the industry they revolve in.
 Marketing research aims to scrutinize the target market, their specific requirements, and
the market size where the business operates.
Market Size is simply the size the arena where the entrepreneur’s business will play. It is
the approximation of the number of buyers and sellers in a particular market. The
entrepreneur is required to determine the market size first to gauge the vastness or tininess
of the market where he or she intends to join.
1) Estimate the potential market-the approximate umber of customers that will buy
the product or avail the service. This is what you call the market space or market
universe because this is the total market.
Example, Rice, staple food of Filipinos.
2) Estimate the customers, who are probably unlikely to buy the product or avail
the service. Using the rice retailing business again, the entrepreneur can already eliminate
socioeconomic classes A,B, and C.
3)Entrepreneur to estimate the market share, which is the plotting and calculation
of the competitors market share to determine the remaining portion for the new venture.
The entrepreneur should first asses the market situation via surveys, customer reviews, or
any other data-gathering methods.

Customer requirements are specific features and characteristics that the consumer
need from a product or a service. Entrepreneurs must be aware of all this requirements for
them to come up with features that best suit their needs. They must no who buys, and what,
when, where, how and most importantly why they buy.

Customers are said to be the lifeblood of the business. These are people who buy the
products or avail the services of the entrepreneur. There thoughts, feelings, and experiences
shape the decision of the business. Thus, the phrase "costumer is always right" is a mantra
that most successful entrepreneur follow.

3. Primary and Secondary Target Market -The entrepreneur can tap a primary target market
and a secondary target market as resources are limited during the startup stage. With this,
the probability of success is higher as the entrepreneur can focus to sell to the identified
customer groups
Primary target market- is the segment of a marketplace a business believes will give
it the best chance to sell.
Market intelligence, which includes customer profiling, drives the entrepreneur
on what correct strategies and tactics to employ. This can only be obtained
through a meticulous market segmentation process.
Market segmentation- is the process of grouping similar or homogenous customers
according to demographic, psychographic, geographic(location), and behavior.
Demographic segmentation, is also called socioeconomic segmentation - is the
process of grouping customers according to relevant socioeconomic variables
for the business venture. These socioeconomic variables include: Income
range and social class, occupation, gender and age, religion and ethnicity.
 Psychographic segmentation is a process of grouping customers
according to their perceptions, way of life, motivations, and inclinations.
Perceptions is a process wherein an individual receives external stimuli using the
five senses of hearing, touching, smelling, seeing and tasting.
Geographic Segmentation - is simply grouping customers according to their location.
This is critical in the analysis of the target market as this encompasses the cultures,
beliefs, preferences, politics and lifestyle of a certain geography.
Behavioral segmentation - is the process of grouping the customers according to
their actions. These behaviors are instigated by occasions, desired benefits, loyalty
and usage of products or availment.
Occasions - drastically affect the customers' buying behavior.
Desired benefits - in behavioral segmentation is efficient because the
entreprenuer determines the exact needs of the customers and offer the
most suited product or service for them.
Loyalty - is the result of maintaining satisfied customers.
Usage of products or availment of service- is also a behavior segmentation
factor that describes to the entrepreuner how often a product is being used
or the service being availed.
Although segmentation is a strategic and an efficient way of classifying and
grouping customers, there is also a term in marketing called market
aggregation.
Market Aggregation - happens when an entrepreneur wants to target a broader
market as possible.

4. Talking to your Customers

 Conducting marketing research in a methodological way will bring the
entrepreneur a substantial branch of relevant ideas that can be used to
effectively run the business.
 Should have solid objective.
 Analyze proper timing for research execution.
 Geography.
 Establish a market research design that will
 Effectively implement the steps mentioned.
Interview - It is a credible way of getting information because the researcher
will be able to capture not just verbal but also non verbal answers such as
facial expressions, characters of words used or body language.
 The drawback though is that interviews are often expensive, especially if the
number of respondents is large.
1. Structured Interview - Employs a specific set of questions and
produces quantitative data. A prearranged questionnaire with
specific questions usually answerable by yes or no (close-ended),
force ranking , multiple choice, or choose-the-best will be answered
by the respondents.
2. Unstructured Interview - Is an informal type of interview and does
not follow a specific set of questions.
• The Focus Group Discussion - It is a process of mining customer and non customer
experience and insights about a specific product or services.
• Customer Buying Pattern - This human observation technique uses the researcher to
understand the buying behavior of the customer such as determining their pain points
buying patterns
• Mystery Shopping - This is as common practice of service businesses today the where the
rersearcher pretends he or she is a customer of his or her own business or the competitor's.
This is a test to determine the quality of the customer service or if the service provider
doing the tight job
Examples of Machine Observation
1. Video cameras or closed circuit television (CCTV)
2. Traffic Counters
3. Web Analytics
4. Barcode Scanners
5. GPS technology
7PS
1. Product - A product is any physical good, service, or idea that is created by an entrepreneur
or an innovator in serving the needs of the customers and addressing their existing
environment problems
2. Place - The place refers to a location or the medium of transaction
3. Price - is the peso value that the entrepreneur assigns to a certain product or service after
considering its costs, competition, objectives, positioning, and target market.
Most Common Pricing Strategies
1. Bundling
2. Penetration Pricing
3. Skimming
4. Competitive Pricing
5. Product Line Pricing
6. Psychological Pricing
7. Premium Pricing
8. Optional Pricing
9. Cost Based Pricing
10. Cost Plus Pricing
 4. Promotion - involves presenting the products or services to the public and how these can
address the public's needs, wants, problems and desires
Advertising - •Television, Radio, Internet, Mobile Phones, Prints, Out-of-home
Selling - act of trading a product or service for a price or free.
Sales Promotion - short-term promotional gimmicks wherein practical incentives
and appealing activities are incorporated to entice the costumers to buy the product
or avail of the services.

5. People - one of the three traditional P's in the marketing mix, employees have become a
major influence in the customer's buying behavior
6. Packaging - how the product or service is presented to the customer. It is the overall
identification (look and feel) of the product or service.
7. Processing - identified as a step-by-step procedure or activity workflow that the
entrepreneur or the employees to effectively and efficiently serve customers

• Brand Management is the supervision of the tangible and intangible elements of a brand.
• Branding is the process of integrating the strategies formed from the marketing mix to give
an identity to the product or service.
To be different and catchy, a brand name must possess the following characteristics:
• Unique
• Extendable
• Easy to remember
• Can describe the benefits of the product or service.
• Can be converted to other dialects or languages in case the entrepreneur to other
territories.
• Can describe a product category
• Can describe concrete qualities
• Positive and inspiring
The brand is the marketing element that sticks to the mind of the target customers and the
public.
 Module 4:
Product Development, Operations and Financial Plan

FUNDAMENTALS OF PRODUCT DEVELOPMENT

The entrepreneur must focus first on refining the product or service and validate its
market acceptability

PRODUCT DEVELOPMENT
-it is the process of developing, testing, and commercializing a productor service.
-it is also composed of four (4) sequential steps

FOUR SEQUENTIAL STEPS OF PRODUCT DEVELOPMENT

1. DEVELOPING A PRODUCT OR SERVICE DESCRIPTION
- Simply describes how a product or service works and how it benefits the costumer.
-a clear product or service description is important because it will serve as the blueprint of
all business operations
- the entrepreneur must put himself or herself in the costumer’s shoes, where the product
description addressed to.
-it should highlight the features that will cater to the costumer’s needs or address the
costumer’s problems.
-realistic superlatives should be used for the product description

2. CREATING A PROTOTYPE
-is the stage where the entrepreneur can experiment, develop and make some
improvements in the potential product or service

X PROTOTYPE- preliminary model or sample of a new product or service that is created

to be test a product concept or service process.

-is the stage where the entrepreneur can experiment, develop and make some
improvements in the potential product or service
- creating a prototype enables the entrepreneur to engage in trial-and-error
-creating a prototype provides the entrepreneur a window to test the performance
and specifications of various materials and service processes.
-a prototype helps the entrepreneur describe the product or service to the
product team
 3. TESTING THE PROTOTYPE
is a vital process before an actual product or service is launched to the market.
-testing the prototype will uncover the final loopholes that need to be fixed before
commercialization

SIX (6) TESTING METHODS:

I.FOCUS GROUP DISCUSSION (FGD)
II.LEGALITY AND ETHICAL TEST
III.SAFETY TEST
IV.PRODUCT COSTING TEST
V.COMPONENT TEST
VI.COMPETITORS’ PRODUCT / SERVICE TEST

4. VALIDATING THE MARKET

- is the process of finding out the intended primary target market that will be buying
the product or availing the service.
THE 4Ms of OPERATION
OPERATIONS PLAN
• Simply states the details in operating the business
• Should have the four operational aspects – called the 4Ms of operations.
OPERATIONS MANAGEMENT
• Controls the implementation of the business plan
4MS of Operation
- Method
- Manpower
- Machines
- Materials
METHODS
- Represent the day-to-day operations of a business
- Refers to the ways of producing a particular product from raw materials
- Describes how an entrepreneur will run the business from all facets of business
- Must abide to the rules and policies
MANUFACTURING OF GOODS
is the process of translating raw materials into finished goods that are acceptable
to the customer’s standards.
 3 ELEMENTS OF MANUFACTURING
- INPUT - The materials or ingredients to be used in a product
- PROCESS - the transformation phase where inputs are processed by manpower and
machines to come up with the final product
- OUTPUT - The final product of the process stage. Intended to be sold to the
customers
MANUFACTURING SITE - It is where the manufacturing process takes place
o Home - Based
o Commercial Space for Rent
o Commercial Space Purchase

SERVICE DELIVERY PROCESS

Service Blueprint - A detailed flowchart of the service business
PEOPLE INVOLVED IN THE SUPPLY CHAIN
MANUFACTURER - Handles the invention, development and production of the
product or service
DISTRIBUTORS - Are entrepreneurs who often buy products or services to the
manufacturers and sell them at a markup price to either wholesalers or retailers
AGENTS - Negiotate with buyers as to how much or how many are to be sold, so the
manufacturer will be able to deliver goods directly to the buyer.
PAYMENT PROCESS
- In Cash
- Credit Cards
- Installment Plan
- Simple accounts payable/ pautang
- POS (Point-of-sale)
- Large fluctuations in income possible
MANPOWER
One of the highest costs of operating a business but is also the most
instrumental to success. Having the right people encompasses a myriad of advantages.
JOB DESCRIPTION – enumerates the duties and responsibilities of the potential employee,
including the scope, limitations and terms and conditions of the employment. The
heading of a job description is a job title, which is the summary of what the employee will
do.
Compensation and benefit range details the potential salary benefits that the employee will
get.
Responsibilities and accountabilities must be relayed and communicated well so that the
employee knows what to expect with the job.
Work schedules include working hours must also be clearly indicated in the job description.

EMPLOYEE QUALIFICATION
o Education Background
o Work Experience
o Specific Skill or Knowledge
o Work Attitude

SELECTION OF JOB APPLICANTS

Entrepreneur or HR Department can conduct series of interviews for the shortlisted
candidates with the objective of getting the most qualified candidate for the job.
JOB OFFER
Job contract generally summarizes the terms and conditions of the candidate’s
employment with the business. It includes the following details
1. Rank or position of the candidate
2. List of responsibilities
3. Salary and benefits
4. Work schedule
5. Probationary period
6. Duration of the contract
7. Resignation procedure
EMPLOYEE DEVELOPMENT
Training people is one of the biggest investments of an entrepreneur or a
businessman. Employee orientation is usually a one to two day session that summarizes the
history of business, its vision and mission ‘
SEVERAL STRATEGIES FOR TALENT MANAGEMENT
o Providing a competitive salary
o Nonmonetary benefits
o Additional benefits such as annual trips.

MACHINES – can be described as the “ best friend” of manpower in producing goods

and services.
SUMMARY IN MODULE 3 AND 4:
ENTREPRENEURSHIP

Submitted by:
Girlie Maureen L. Jayme
Grade 12- Shakespeare

Submitted to:
Anna Hazel Vasaya