ENTREPRENEURSHIP REVIEWER

MARKET TARGETING

- Involves breaking a market into segments and then concentrating marketing efforts on one or a few key segments
- Marketers select target markets using four different strategies which are undifferentiated targeting, concentrated
marketing, multi-segment targeting, and customized targeting
TARGET MARKET COVERAGE STRATEGIES

Undifferentiated Targeting- a.k.a. aggregate targeting or mass marketing. Lacks customer knowledge (assumes that all members of a
market have similar needs that can be met with a single marketing mix. the company uses one marketing mix for the entire market)

Differentiated Targeting- a.k.a. multi-segment marketing. The changing wants and needs of customers have developed marketing
strategies that cater to several market segments

Concentrated Targeting- a.k.a. single strategy. Focuses all marketing efforts on a single market segment

Niche Marketing- a.k.a. customized targeting. The company chooses to target a small market with significant purchasing power
(Products marketed using niche marketing are almost always in the premium category and naturally dictate a higher price)

MARKET POSITIONING

After a company or firm has identified its actual target market/s, its product or service must now create a favorable impression in
the minds of consumers. This process is called market/product positioning

- It is the process of perceiving and retaining in the mind of the customers and advantages and attributes of the product
- A complex set of perceptions, impressions, and feelings that the consumers hold against the competing brand available in
the market
Two Approaches in Market Positioning

Head-to-Head Positioning

- a.k.a. Head on positioning

- is competing directly with competitors on similar product attributes in the same target markets
Differentiation positioning

- in order to position a product in the market, the company has to decide on a differentiation strategy or competitive
advantage
Competitive Advantage

- a product’s advantage over its competitors gained by offering consumers better value
- this is also referred to as Unique Selling Proposition (USP)
- Examples of Differentiation Strategies: Product, Service, Channel, People, Image
Brand Position Statement- Defines how your brand shows up in the market. Many brands are negligent in failing to define and
differentiate themselves

Positioning Statement- A brief description of the target market and a convincing picture of how the company wants that market to
perceive the brand. Helps maintain focus on the brand and its Value Proposition while working on the market strategy and tactics. It
is an internal tool

*review 6 keys to keep in mind about a positioning statement*

Basic template for writing a positioning statement: For (target market), the (brand) is the (point of differentiation) among all (frame
of reference) because (reason to believe)

MARKETING RESEARCH

- A comprehensive process of understanding the customers’ complexities and the industry they revolve in
- It is the most critical task of an entrepreneur
- Serves as the bridge that connects an entrepreneur with his or her customers
- No entrepreneur should establish a business without undergoing the marketing research process or else the business will
surely fail
- Will lead the entrepreneur to the most effective strategies to employ
 - Aims to analyze the target market, their specific requirements, and the market size where the business operates
- Marketing research will not be complete without talking directly to the target customers
- The best way to fully understand customers is to ask them about their thoughts and desires
- Should have first a solid objective, which states the research’s purpose
- Identify the appropriate research activities, tools, and samples that will set the scope and limitations of the research project
Types of Marketing Research: Qualitive and Quantitative

4 common methods of collecting data

Interview- most reliable and credible way of getting relevant information from the target customers (often expensive). 2 types
of interview (unstructured and structured)

Focus Group Discussion- commonly used by market researchers to capture qualitative results from the target customers

Observation- one of the preferred and practical methods of generating business ideas because the researcher documents the
behavioral patterns of people, objects, or events without necessarily requiring them to participate in the research process. 2
types of observation: Human observation (customer purchase and mystery shopping) and Machine Observation (Video
cams/closed-circuit television, traffic counters, web analysis, barcode scanners, GPS technology)

Survey- 2 types of survey (traditional and online)

FUNDAMENTALS OF PRODUCT DEVELOPMENT

- The entrepreneur must first focus on refining the product/service and validate its market acceptability before
commercializing
- Enhancement or repositioning of an existing product
- The process of developing, testing, and commercializing a product or service
- Composed of FOUR sequential steps: (1) developing a product or service description, (2) creating a prototype, (3) testing
the prototype, (4) validating the market
PRODUCT SERVICE DESCRIPTION- describes how a product or service works and how it benefits the customers. Serves as blueprint
for all business operations.

Things to remember: (1) directly address the primary target market in a personal manner using everyday language (2) highlight the
features that will cater to the to the customer’s needs/address customer’s problems (3) realistic superlatives should be used for the
product description

CREATING A PROTOTYPE- a prototype is the preliminary model of a new product or service. Where the entrepreneur’s ideas become
a tangible reality

Stage where the entrepreneur can experiment, develop, & make improvements. Objective is to verify the product/service. One
technique is to study competitors.

TESTING THE PRODUCT PROTOTYPE- vital process before launching product/service to the market. Uncover final loopholes and gives
entrepreneur leeway to scrutinize the prototype.

Testing methods:

1. Focus group discussion- participants will provide relevant insights about the new product/service
2. Legality & ethical test- ensures that product/service complies with all laws and regulations and has necessary permits
or licenses to operate
3. Safety test- ensure that product is safe for consumption/use
4. Product costing test- examine every stage in manufacturing process to evaluate and finalize the costs involved
5. Component test- each component must be tested independently to identify component failures
6. Competitor’s product/service test- test a similar line of products for the competitor’s product or service itself to
compare
VALIDATION OF MARKET ACCEPTABILITY-the process of finding out if the intended primary target market will be buying the product
or availing the service. Can strongly suggest if business will be successful or not. Tests whether the value proposition and unique
selling proposition are appropriate. The last step before the product/service can be introduced to the market
PRODUCT LIFE CYCLE

- Keep in mind these facts: Product life limitation, Different challenges and opportunities, Profit rise and fall, Strategy
planning for financial, manufacturing, human resource, and marketing in each phase
- A product cycle portrays a curve in 4 stages: Introduction, Growth, Maturity, Decline
I. Introduction
Costs are high, Little or no competition, Demand has to be created, Overcoming customer hesitance to buy the
product. That’s when Advertising works the best
II. Growth
Firstly, it forms a basis for rapid growth in sales and profits, Public Awareness increases, Competition increase with new
players in establishing the market
III. Maturity
Consumers begin to see the product as an “expert” in its category. The team knows it has to address various challenges to
achieve its ambitious target; consumers see the need for the product only in specific situations, resulting in rough usage and
seasonality.
The brand has to fight in a competing environment in which new variants and re-launches drive growth. It is critical to
determine what & where the business should push to optimize the marketing spend and further accelerate the brand
growth. However, in this stage, the product:
a. Earns maximum profit
b. Costs are lowered due to production and smooth operation functionality.
c. Sales volume is increased, and saturation is at its peak
IV. Decline
There cannot be a direct decline, but the race to achieve leadership in every category may have caused stagnant
growth in antiseptic sales.
Sales volume diminishes, An emerging competitor is holding another significant share of the market, Product tends to
lose its brand image and becomes more of a commodity