GOOD

AFTERNOON
ENGINEERS!!
April 01, 2023 April 22, 2023
BUSINESS MODELS
VALUE PROPOSITION
MARKET IDENTIFICATION AND
ANALYSIS
April 29, 2023
INTRODUCTION TO INTELLECTUAL
April 15, 2023 PROPERTY

CREATING COMPETITIVE
ADVANTAGE May 08, 2023
MIDTERM EXAM
Value Preposition
The value a
company promises
to deliver to
customers should
they choose to buy
their product.
 1 Define Value Proposition

TODAY'S 2
Purpose and Importance of Value

AGENDA Proposition

3 How to create a value proposition

4 Employee Proposition

What will happen if the value

5 proposition fails?
VALUE
PROPOSITION
WHAT IS VALUE PROPOSITION?
A value proposition in marketing is a
concise statement of the benefits that a
company is delivering to customers who
buy its products or services. It serves as a
declaration of intent, both inside the
company and in the marketplace.
The term value proposition is believed to
have first appeared in a McKinsey & Co.
industry research paper in 1988, which
defined it as "a clear, simple statement of
the benefits, both tangible and
intangible, that the company will provide,
along with the approximate price it will
charge each customer segment for those
benefits."
 VALUE
PROPOSITION
A well-crafted value proposition will
differentiate the company and/or its specific
product or service in the marketplace and
among a target market or target audience.
A company should view its value proposition
statement as an opportunity to tell
customers why the company, its product, or
its service is the best one to buy.
It summarizes why the company can best
meet the customer's needs or best solve the
customer's problems.
The value proposition should do this in a
concise, easy-to-understand format that
customers will remember.
As such, a value proposition should be seen
as a way to win customers, gain their loyalty,
position the company in the market, boost
sales, and ultimately confer a competitive
advantage.

Netflix's entire value proposition is linked to the fact that it provides quality
entertainment to its user, 24/7. This proposition includes Access to a huge catalog of
products, with content for all tastes. On-demand streaming, with 24/7 access –
without ads!
UNIQUE VALUE
PROPOSITION
EXAMPLES
Uber – The Smartest Way
to Get Around
Uber’s value proposition, offering
uber convenience
 Apple iPhone – The
Experience IS the Product

Apple’s iPhone value proposition,

offering unique experience
Nike – Where all athletes
belong
Nike makes it clear that anyone can
become a Nike Member, reflecting
the company’s penchant for
promoting inclusivity.
PURPOSE OF A VALUE
PROPOSITION

A value proposition is meant

to convince stakeholders,
investors, or customers that
a company or its products or
services are worthwhile. If
the value proposition is
weak or unconvincing it may
be difficult to attract
investment and consumer
demand.
IMPORTANCE OF A VALUE
PROPOSITION

A value proposition serves as

both a marketing statement
and a sales pitch, but it is
more expansive than simply
a slogan, catchphrase, or
positioning statement.
IMPORTANCE OF A VALUE
PROPOSITION

A company should craft its

value proposition to a target
audience, and it should craft
a proposition statement that
speaks to the value or values
that target audience seeks
to get from the company.
 TYPES OF VALUE
PROPOSITION

1 Company Value Proposition 3 Product Value Proposition

2 Homepage Value Proposition 4 Employee Proposition

 Company Value Proposition

A company's value proposition

tells a customer the number one
reason why a product or service
is best suited for that particular
customer. A value proposition
should be communicated to
customers directly, either via the
company's website or other
marketing or advertising
materials.
 Homepage Value
Proposition

The first thing people read on your website is the value proposition. It's the
initial text or image that is meant to spark interest in visitors, leading them
to view more of the website.
 Product Value Proposition

A product value proposition summarizes why a customer would choose your

product over any other. It is a succinct statement that reveals the value
customers will enjoy when they buy from your company, use your product, and
interact with your team.
EMPLOYEE VALUE
PROPOSITION

The employee value proposition is a part of employer branding, in that it is one of

the ways companies attract the skills and employees they desire and keep them
engaged. It is how they market their company to prospective talent, and also how
they retain them in a competitive job market.

The employee value proposition is a part of employer branding, in that it is one of

the ways companies attract the skills and employees they desire and keep them
engaged. It is how they market their company to prospective talent, and also how
they retain them in a competitive job market.
 HOW TO CREATE A
VALUE PROPOSITION

1 Know Your Customer 4 Be Clear And Concise

Understand your costs and

2
benefits 5 Design Is King

Don’t forget about your

3
competitors
KNOW YOUR CUSTOMERS

Before creating your value

proposition, you must
analyze the market and
potential customers. Identify
your target customers and
target market segment to
understand their desired
benefits.
UNDERSTAND YOUR COSTS
AND BENEFITS

Identify and assess the benefits

delivered by your company
and its products or services,
along with the costs incurred
to provide them. It is important
to do this because the value to
your customers is essentially
the difference between the
benefits and costs of your
product or service.
COST-BENEFIT ANALYSIS
Cost-benefit analysis, is a
process or tool to support
decision making in projects.
CBA evaluates the cost versus
the benefit of a project to
determine project feasibility as
well as provide decision
making metric when weighing
up multiple options.
What is the formula for CBA?
The output of cost-benefit analysis will
show the net benefit (benefits minus
cost) of a project decision. For example:
Project A: Building a new product will
cost 100,000 with expected sales of
100,000 per unit (unit price = 2). The sales
of benefits, therefore, are 200,000. The
simple calculation for CBA for this project
is 200,000 monetary benefit minus
100,000 cost equals a net benefit of
100,000.
DON’T FORGET ABOUT
YOUR COMPETITORS

After the analysis of target

customers and your own
company, evaluate the
competitive landscape in the
market. Determine the
strengths and weaknesses of
your major competitors and
identify ways you can
differentiate your business
from them.
BE CLEAR AND CONCISE

Don’t forget that an effective

value proposition is clear and
concise. Your target customers
must quickly grasp the
message you want to convey. It
should not exceed two or three
sentences.
DESIGN IS KING!

Make your proposition visible

and appealing on all marketing
materials (e.g., website).
Remember that if you have
created a powerful value
proposition, but no one can see
it, the effect of the proposition
will be zero!
IF A VALUE 1
Review our brand and
competitors.

PROPOSITION Your Your

FAILS?
Brand Competitor

If a company cannot convince Your Your

others that it has value or that its Competitor Competitor

products or services or valuable,

it will lose profitability and access
to capital and may ultimately go 2 List key attributes.
out of business.
Identify criteria and rank attributes
3
as high or low.
 KEY TAKEAWAYS
A company's value proposition tells a customer
1 the number one reason why a product or
service is best suited for that particular
customer.

A value proposition should be communicated

2 to customers directly, either via the company's
website or other marketing or advertising
materials.

Value propositions can follow different formats,

3 as long as they are "on brand," unique, and
specific to the company in question.

A successful value proposition should be

4 persuasive and help turn a prospect into a
paying customer.
 Market
Identification
and Analysis
- April 01, 2023 -
 • Market
• Market Analysis

Contents
• Market Segments and
Ta r g e t s
• Market Segmentation
MARKET
MARKET • It is defined as the sum of all the
buyers and sellers in the area or
region under consideration (i.e.
countries, cities and communities)

• It is the value, cost, and price of

items traded as per forces of
supply and demand in a market.
The market may be a physical
entity or maybe virtual
Market
THE EXTERNAL ENVIRONMENT
E N V I R O N M E N TA L
SCANNING
The monitoring, evaluating,
and disseminating of
information from the external
and internal environments to
key people within the
corporation to avoid strategic
surprise and ensure the long-
term health of the firm.
Market
S O C I E TA L E N V I R O N M E N T
 MARKET
ANALYSIS
MARKET • A market analysis is a thorough

ANALYSIS
assessment of a market within a specific
i n d u s t r y. Yo u w i l l s t u d y t h e d y n a m i c s o f
your market, such as volume and value,
potential customer segments, buying
patterns, competition, and other important
factors. A thorough marketing analysis
should answer the following questions:

• Who are my potential customers?

• What are my customers’ buying habits?
• How large is my target market?
• How much are customers willing to pay
for my product?
• Who are my main competitors?
• What are my competitors’ strengths and
weaknesses?
OBJECTIVES OF
MARKET ANALYSIS
D E T E R M I N E T H E AT T R A C T I V E N E S S O F M A R K E T
FIND AND IDENTIFY NEW BUSINESS
OPPORTUNITIES

TA R G E T I N G A N D D I V I D I N G T H E M A R K E T I N T O
NICHE

POSITIONING THE PRODUCTS OR BRANDS IN

THE MIND OF CUSTOMERS

U N D E R S TA N D T H E D Y N A M I C S O F T H E
MARKET
BENEFITS OF MARKET
ANALYSIS
RISK REDUCTION
Knowing your market can reduce risks in
your business since you’ll understand major
market trends, the main players in your
i n d u s t r y, a n d w h a t i t t a k e s t o b e s u c c e s s f u l ,
all of which will inform your business
d e c i s i o n s . To h e l p y o u f u r t h e r p r o t e c t y o u r
business, you can also conduct a SWOT
analysis, which identifies the strengths,
weaknesses, opportunities, and threats for
your business.
BENEFITS OF MARKET
ANALYSIS
TA R G E T E D P R O D U C T S O R S E R V I C E S
Yo u a r e i n a m u c h b e t t e r p o s i t i o n t o s e r v e
your customers when you have a firm grasp
on what they are looking for from you. When
you know who your customers are, you can
use that information to tailor your business’s
offerings to your customers’ needs.
BENEFITS OF MARKET
ANALYSIS
EMERGING TRENDS
Staying ahead in business is often about
being the first to spot a new opportunity or
trend, and using a marketing analysis to stay
on top of industry trends is a great way to
position yourself to take advantage of this
information.
BENEFITS OF MARKET
ANALYSIS
REVENUE PROJECTIONS
A market forecast is a key component of
most marketing analyses, as it projects the
future numbers, characteristics and trends in
your target market. This gives you an idea of
the profits you can expect, allowing you to
adjust your business plan and budget
a c c o r d i n g l y.
BENEFITS OF MARKET
ANALYSIS
E VA L U AT I O N B E N C H M A R K S
It can be difficult to gauge your business’s
success outside of pure numbers. A market
analysis provides benchmarks or key
performance indicators (KPIs) against which
you can judge your company and how well
you are doing compared to others in your
i n d u s t r y.
BENEFITS OF MARKET
ANALYSIS
C O N T E X T F O R PA S T M I S TA K E S
Marketing analytics can explain your
business’s past mistakes or industry
anomalies. For example, in-depth analytics
can explain what impacted the sale of a
specific product, or why a certain metric
performed the way it did. This can help you
avoid making those mistakes again or
experiencing similar anomalies, because
you’ll be able to analyze and describe what
w e n t w r o n g a n d w h y.
BENEFITS OF MARKET
ANALYSIS
M A R K E T I N G O P T I M I Z AT I O N
This is where an annual marketing analysis
comes in handy – regular analysis can
inform your ongoing marketing efforts and
show you which aspects of your marketing
need work, and which are performing well in
comparison to the other companies in your
i n d u s t r y.
BENEFITS OF MARKET
ANALYSIS
IDENTIFYING THE MOST AND LEAST
VA L U A B L E M A R K E T S .
Ta r g e t m a r k e t a n a l y s e s h e l p d e t e r m i n e w h i c h
markets are worth pursuing and which are
not.

DEVELOPING BUYER PERSONAS

Often, creating an "ideal" buyer is part of
the target market analysis for businesses to
identify the specifics of their target
d e m o g r a p h i c a c c u r a t e l y.
BENEFITS OF MARKET
ANALYSIS
FINDING GAPS IN THE MARKET TO
FILL A thorough market analysis might reveal
untapped areas of the market that your
c o m p a n y, p r o d u c t o r s e r v i c e c a n
accommodate.

I M P R O V I N G B U S I N E S S S T R AT E G Y.
With the information garnered from the
target market analysis, you can create a
strong business strategy using data to
support your decisions.
BENEFITS OF MARKET
ANALYSIS
ASSESSING THE VIABILITY OF A
PRODUCT OR SERVICE.
Market testing can be a valuable part of a
target market analysis, particularly for a
brand new product or service. Feedback from
potential customers in your target market
can help determine how successful your
product will be.

FINDING NEW MARKETS.

With surveys or other research methods, you
may find a new market interested in your
product.
DIMENSION OF
MARKET ANALYSIS
• MARKET SIZE
• MARKET SEGMENT
• MARKET TRENDS
• M A R K E T G R O W T H R AT E
• M A R K E T P R O F I TA B I L I T Y
• I N D U S T R Y C O S T FA I L U R E
• DISTRIBUTION CHANNEL
• K E Y S U C C E S S FA C T O R S
DIMENSION OF
MARKET ANALYSIS
MARKET SIZE
Market size refers to the total number of
potential buyers for a product or service and
the potential revenue reach based on that
population size. Market sizing is the process
of calculating these numbers to accurately
measure your business’s growth potential.
DIMENSION OF
MARKET ANALYSIS
M A R K E T S E G M E N TAT I O N
Market segmentation is the process of
dividing the market into subsets of
customers who share common
characteristics. The four pillars of
segmentation marketers use to define their
ideal customer profile (ICP) are
demographic, psychographic, geographic and
behavioral.
DIMENSION OF
MARKET ANALYSIS
MARKET TRENDS
Market trend is the direction of the asset's
price over time. In technical analysis, when
prices experience a series of higher highs and
higher lows, they are said to be in an uptrend,
which is often referred to as the bull market.

Identify the trends in market segment within

which the product fits.

If the market segment is growing and is

p r o j e c t e d t o c o n t i n u e t o g r o w, t h e n i t i s u p w a r d
trend
DIMENSION OF
MARKET ANALYSIS
M A R K E T G R O W T H R AT E
Market growth rate is the change in a market's
size over a given period, typically expressed
as a positive or negative percentage. It
quantifies the rise in demand for a product or
service within a market. Market growth is
directly proportional to consumer demand.
DIMENSION OF
MARKET ANALYSIS
M A R K E T P R O F I TA B I L I T Y
Market profitability takes account of the
financial factors that affect your ability to
make profits. These may be: the level of
interest in your product. the ability of
customers, buyers or suppliers in the market to
influence your business.
DIMENSION OF
MARKET ANALYSIS
INDUSTRY COST STRUCTRURE
Cost structure is the aggregate of the various
types of costs, fixed and variable, that make
up a business' overall expenses. Companies
use cost structure to set pricing and identify
areas where expenses can be reduced.
DIMENSION OF
MARKET ANALYSIS
DISTRIBUTION CHANNEL
A distribution channel represents a chain of
businesses or intermediaries through which the
final buyer purchases a good or service.
Distribution channels include wholesalers,
retailers, distributors, and the Internet. In a
direct distribution channel, the manufacturer
s e l l s d i r e c t l y t o t h e c o n s u m e r.
DIMENSION OF
MARKET ANALYSIS
K E Y S U C C E S S FA C T O R S
The key success factors are those elements
that are necessary in order for the firm to
achieve its marketing objectives. A few
examples of such factors include:

Access to essential unique resources.

Ability to achieve economies of scale.
Access to distribution channels.
Te c h n o l o g i c a l p r o g r e s s .

It is important to consider the key success

factors that may change over time, especially
as the product progresses through its cycle.
How to conduct
market analysis
DETERMINE YOUR PURPOSE.
It’s important to define it right away to keep
you on track throughout the process. Start
by deciding whether your purpose is internal
– like improving your cash flow or business
operations – or external, like seeking a
b u s i n e s s l o a n . Yo u r p u r p o s e w i l l d i c t a t e t h e
type and amount of research you will do.
How to conduct
market analysis
R E S E A R C H T H E S TAT E O F T H E
I N D U S T R Y.
Map a detailed outline of the current state of
y o u r i n d u s t r y. I n c l u d e w h e r e t h e i n d u s t r y
seems to be heading, using metrics such as
size, trends and projected growth, with
p l e n t y o f d a t a t o s u p p o r t y o u r f i n d i n g s . Yo u
can also conduct a comparative market
analysis to help you find your competitive
advantage within your specific market.
How to conduct
market analysis
I D E N T I F Y Y O U R TA R G E T C U S T O M E R .
Not everyone in the world will be your
c u s t o m e r, a n d i t w o u l d b e a w a s t e o f y o u r
time to try to get everyone interested in your
product. Instead, use a target market
analysis to decide who is most likely to want
your product and focus your efforts there.
Yo u w a n t t o u n d e r s t a n d y o u r m a r k e t s i z e ,
who your customers are, where they come
from, and what might influence their buying
decisions.
How to conduct
market analysis
U N D E R S TA N D Y O U R C O M P E T I T I O N .
To b e s u c c e s s f u l , y o u n e e d a g o o d
understanding of your competitors, including
their market saturation, what they do
differently than you, and their strengths,
weaknesses and advantages in the market.
Start by listing all your main competitors,
then go through that list and conduct a
S W O T a n a l y s i s o f e a c h c o m p e t i t o r. W h a t
does that business have that you don’t?
What would lead a customer to choose that
business over yours? Put yourself in the
customer ’s shoes.
How to conduct
market analysis
G AT H E R A D D I T I O N A L D ATA .
When conducting marketing analyses,
information is your friend – you can never
have too much data. It is important that the
data you use is credible and factual, so be
cautious of where you get your numbers.
How to conduct
market analysis
A N A LY Z E Y O U R D ATA .
After you collect all the information you can
and verify that it is accurate, you need to
analyze the data to make it useful to you.
Organize your research into sections that
make sense to you, but try to include ones
for your purpose, target market and
competition.
How to conduct
market analysis
A N A LY Z E Y O U R D ATA .
These are the main elements your research
should include:

• An overview of your industry’s size and

growth rate
• Yo u r b u s i n e s s ’ s p r o j e c t e d m a r k e t s h a r e
percentage
• An industry outlook
• Customer buying trends
• Yo u r f o r e c a s t e d g r o w t h
• How much customers are willing to pay for
your product or service
How to conduct
market analysis
P U T Y O U R A N A LY S I S T O W O R K .
Once you’ve created a market analysis, it’s
time to actually make it work for you.
I n t e r n a l l y, l o o k f o r w h e r e y o u c a n u s e y o u r
research and findings to improve your
business. Have you seen other businesses
doing things that you’d like to implement in
your own organization? Are there ways to
make your marketing strategies more
effective?
 MARKET
SEGMENTS AND
TARGETS
Identifying Market
Segments and Target
Ta r g e t m a r k e t i d e n t i f i c a t i o n , b y d e f i n i t i o n ,
is the method used to sort potential clients
for sales and marketing campaigns,
advertising and promotions using income,
demographic, and lifestyle characteristics
of a market and census information
STEPS IN IDENTIFYING
TARGET MARKETS
1.Defining sources where products and/or
services are most likely needed.
2.Researching the volume of products and
services sold and used over a broad
demographic area.
3.Studying sources of raw materials that are
required to produce products or services.
4.Identifying major competitors to determine
the location of target markets
 MARKET
SEGMENTAT ION
MARKET
SEGMENTATION
D E M O G R A P H I C S E G M E N TAT I O N
Demographic segmentation is one of the
simple, common methods of market
segmentation. It involves breaking the
market into customer demographics as age,
i n c o m e , g e n d e r, r a c e , e d u c a t i o n , o r
occupation. This market segmentation
strategy assumes that individuals with
similar demographics will have similar
needs.

Example: The market segmentation strategy

for a new video game console may reveal
that most users are young males with
disposable income.
MARKET
SEGMENTATION
G E O G R A P H I C S E G M E N TAT I O N
Geographic segmentation is technically a subset
of demographic segmentation. This approach
groups customers by physical location, assuming
that people within a given geographical area
may have similar needs. This strategy is more
useful for larger companies seeking to expand
into different branches, offices, or locations.

Example: A clothing retailer may display more

raingear in their Pacific Northwest locations
compared to their Southwest locations.
MARKET
SEGMENTATION
B E H AV I O R A L S E G M E N TAT I O N
Behavioral segmentation relies heavily on
market data, consumer actions, and decision-
making patterns of customers. This approach
groups consumers based on how they have
previously interacted with markets and
products. This approach assumes that
consumers prior spending habits are an
indicator of what they may buy in the future,
though spending habits may change over time
or in response to global events.

Example: Millennial consumers traditionally buy

m o r e c r a f t b e e r, w h i l e o l d e r g e n e r a t i o n s a r e
traditionally more likely to buy national brands.
MARKET
SEGMENTATION
P S Y C H O G R A P H I C S E G M E N TAT I O N
Psychographic segmentation is defined as a
market segmentation technique where groups
are formed according to psychological traits that
influence consumption habits drawn from
people’s lifestyle and preferences. It is mainly
conducted on the basis of “how” people think
and “what” do they aspire their life to be.

Any organization which intends to understand

their consumers’ thought process can divide
their target market according to this
segmentation method.
Any Question?
Thank
you