Recognize and

Understand the
Market
 Content
Describe the unique selling proposition and value
proposition that differentiate one’s product/service
from existing products/services.
Determine who the customers are in terms of:
a. Target market
b. b. Customer requirement
c. c. Market size
What I Know
Let’s see if you already have some ideas about Recognizing
Potential Markets. Write True if the statement is correct and write False if
not.
____ 1. Value refers to what the product does for customers that they’re
prepared to pay.
____ 2. The Marketing Concept that was first proposed as a theory to
understand the pattern in successful advertising was called Unique Selling
Proposition.
____ 3. In creating value proposition, entrepreneurs will consider the four
(4) basic elements.
____ 4. Unique selling proposition is specific, often citing numbers or
percentages.
____5. Effective selling using advertising and marketing is part of value
proposition.
____6. Identifying and rank the uniqueness of the product or services is
one tip for the entrepreneur on how to create an effective unique selling
proposition.
____7. The entrepreneurs should not consider the health benefits of the
consumers.
____8. Consumers have common wants and needs.
____9. Market targeting is a stage in market identification process that
aims to determine the set of buyers with common needs and
characteristics.
____10. Identifying the unique selling proposition will not require
marketing research.
____11. Targeting a specific market does not mean that you are excluding
people who do not fit your criteria.
____12. Demographic segmentation is the total market divided according
to geographic location.
____13. Knowledge and awareness are variables to consider in behavioral
segmentation.
____14. Service requirement is an intangible thing or product that cannot
be touched, but can be felt.
____15. Market size is like a world globe measurement.
 In opening a new venture or business, you
need to determine the Unique Selling Proposition
(USP) and Value Proposition (VP) of your
product as well as your target market.
What is Value Proposition (VP)?

It 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
 Entrepreneurs should think of other
alternatives to make their products better.
An important aspect in Value Proposition
is that it must be truthful and that it should
establish credibility to the consumers.
Example:

Aling Charing Sari-Sari Store opens only from 6:00

am to 6:00 pm, but Aling Charing noticed that there are
customers who go to a 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.
Target Customer:
The customers who go to a nearby town to look for a
convenience store at around 10:00 pm to 6:00 am
Needs/opportunity:
A great opportunity for her store to operate 24/7.
Name of the product:
Name of the enterprise/company:
Aling Charing Sari-Sari Store
Proposed Value Proposition:
Charing Sari-sari Store, Open 24/7
Target Customer:
Jollibee caters to a diverse range of customers,
including families, young urban professionals,
children, and the overseas Filipino market.
Needs/opportunity:
The company focuses on providing high-quality
food at reasonable prices,
Name of the product:
Burger, Fries, Chicken, Spaghetti,etc.
Name of the enterprise/company:
Jollibee
Proposed Value Proposition:
“Jollibee promises to provide high-quality
food, fast and friendly service in a clean and
comfortable environment tailored to the Filipino
palate. It is now the biggest fast-food chain in the
country.”
What is Unique Selling Proposition?

It refers to how you sell your product or

services to your customer. You will address the
wants and desires of your customers.
You may ask the following questions in doing this:

What do the customers want?

What brand does well?
What does your competitor sell well?
 Some tips for the entrepreneur on how to create
an effective unique selling proposition to the target
customers are:

• Identify and rank the uniqueness of the product

or services character
• Be very Specific
• Keep it Short and Simple (KISS)
 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
The proposed unique selling
proposition is: “Charing sari-sari
store, open 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 Selling Proposition and Value
Proposition are two of the most
famous tools used to explain why
prospect customers buy each product
and service.
• We learn that USP and VP are frameworks of
each business industry.
• The two propositions are valuable for the
entrepreneurs.
• Make sure that you're focusing on a solution that
is a need, and make sure that you are targeting a
customer segment that's large enough and cares
enough about your solution so that you can build
a viable business.
• We learn that USP and VP are frameworks of
each business industry.
• The two propositions are valuable for the
entrepreneurs.
• Make sure that you're focusing on a solution that
is a need, and make sure that you are targeting a
customer segment that's large enough and cares
enough about your solution so that you can build
a viable business.
ACTIVITY 4:

Make your own business and create your

logo, and determine the Unique Selling
Proposition (USP) and Value Proposition (VP) of
your product as well as your target market.
 LOGO

Target Customer:
Needs/Opportunity:
Name of the Product:
Name of the Entreprise/Company:
Proposed Value Proposition:
Tag Line:
 Understanding your market is critical in
building your business model. There are three
factors that will determine your customers.

 Target Market
 Customer Requirements
 Market Size
 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 a
market segment that an
entrepreneurial venture intends to
serve.
COMMONLY USED
METHODS FOR
SEGMENTING THE
MARKETS
1. Geographic segmentation
- the total market is divided according to geographical
location.
- this type of segmentation allows
marketers to target products and
messages that suit the specific
needs and preferences of
customers in different regions or
areas.
Variables to consider
• Climate
• Dominant Ethnic Group
• Culture
• Density (either rural or urban)
2. Demographic Segmentation

- divided based on consumers

- the most commonly used
method.
Variables to consider
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size
3. Psychological Segmentation

- divided in terms of how

customers think and believe.
Variables to consider
a. Needs and wants
b. Attitudes
c. Social class
d. Personality traits
e. Knowledge and awareness
f. Brand concept
g. Lifestyle
4. Behavioral Segmentation

- divided according to customers’ behavior pattern

as they interact with a company.
- Behavioral segmentation separates people based
on common factors, such as purchasing similar
products, sharing the same hobbies or having
similar beliefs
Variables to consider
a. Perceptions
b. Knowledge
c. Reaction
d. Benefits
e. Loyalty
f. Responses
 CUSTOMER REQUIREMENTS

Customer requirements are the specific

characteristics that the customers need from a
product or a service.
TWO TYPES OF CUSTOMER REQUIREMENTS:

1. Service Requirement
2. Output Requirement
SERVICE REQUIREMENT

An intangible thing or product that

cannot be touched but the customer can
feel the fulfillment.
Service Requirement Like:

 on-time delivery
 service with a smile
 easy-payment
OUTPUT REQUIREMENTS

Tangible thing or things that can be

seen.
Costumers will avail services as a
product, then various service requirements
can take the form of output requirements.
For Example:

The consumer hires a multi cab, then

on-time arrival becomes an output
requirement.
 MARKET SIZE

Market size is like a size

of the arena where the
entrepreneurs will play their
business.
It is the approximate
number of sellers and buyers
in a particular market.
 In determining the market size, the
entrepreneur will conduct a strategic
marketing research from reliable
sources using the following method.
 Step 1: Estimate the potential market
Approximate number
of customers that will buy
the product or avail your
services.
Step 2:
Estimate the
customers who
probably dislike to buy
your product or avail
the services.
Step 3:
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 becomes the most
important factor if you ever need
to raise funding for your business.
WRITTEN ACTIVITY:
Fill in the blanks:

Entrepreneurs will take a look at each customer’s demand in the market.

Understanding your market will help reach your goal to compete with bigger
competitors. Building positive relationships with customers require more
understanding in customers’ purchasing motivations and habits.
__________________ and ______________________ basically join hand in hand to
promote its product and services. ____________________is a sage in market
identification process that aims to determine the buyers’ common needs and
behavior. There are four (4) methods for segmentation, ____________________,
____________________, ______________________, and _____________________.
There are two types of customer requirements, the ___________________ and
_________________, the tangible and intangible things.
ADDITIONAL ACTIVITY
Give at least 5 products being advertised or promoted on television.
Evaluate each one according to its USP, VP and method of segmentation
used, customer requirements, and who are the customers.
Method of Customer
Product Name USP VP Target Customer
Segmentation Requirements
Ex. Filipino taste Service and
Bida ang Saya Psychological All People
Jollibee Burger Output
1.
2.
3.
4.
5.